With spending at nearly 25 percent of GDP and headed for more than 40 percent of national output, according to the liberal Progressive Policy Institute, how will the Democrats pay for it all?
The evidence points toward the way big-government, slow-growth Europe does it: the value added tax.
Working as a sales tax that you don’t get to see on your receipt, the VAT has proven to be a brutally efficient money machine in other countries. Maybe that’s why Speaker of the House Nancy Pelosi last month told Charlie Rose that a VAT was “on the table” as a solution to America’s fiscal liabilities.
The Senate bill’s “fee” on medical devices operates much like a VAT, and could end up being the model for future adoption of an unprecedented VAT on all goods and services in the United States. SOURCE