Obama stirring up 'VAT' of tax trouble

By CHARLES HURT, Bureau Chief

Last Updated: 9:18 AM, April 22, 2010

Posted: 3:23 AM, April 22, 2010

Comments: 33

WASHINGTON -- On the eve of his trip today to New York City to push for Wall Street regulation, President Obama refused to rule out employing a European-style value-added tax to give the federal government enough money to pay debts.

"There's been a lot of talk around town lately about the value-added tax. That is something that has worked for some countries," Obama said in a CNBC interview.

It would be "novel" to introduce it in the United States, the president told CNBC's John Harwood -- but declined to say yet whether he supports or opposes the idea.

REUTERS

U.S. President Barack Obama.

"Before, you know, I start saying, 'This makes sense or that makes sense,' I want to get a better picture of what our options are," Obama said, referring to the commission he has empaneled to offer ideas on reducing the government's massive debt.

The executive director of that panel also left open the likelihood of a VAT, a type of national sales tax assessed on every step of a product's path to the market.

"We need to talk through all sides of this equation," Bruce Reed told Fox News. "We intend to look at everything."

The 18-member commission is led by former Clinton White House Chief of Staff Erskine Bowles, a Democrat, and former Wyoming Sen. Alan Simpson, a Republican.

In the interview ahead of today's appearance at Cooper Union in Manhattan, Obama also "categorically" denied any involvement or prior knowledge of the Securities and Exchange Commission's civil suit brought last week against Goldman Sachs. Many of his fellow Democrats have been quick to use the case as ammunition to ram through Congress an overhaul of financial regulation.

"We are not Johnny-come-latelies to this issue," Obama said, noting that he has called for regulation reforms since before he took office.

And the SEC, he said, is an independent agency. "We found out about [the suit] on CNBC," Obama told Harwood.

The president also was asked if he was embarrassed by the nearly $1 million he has collected in campaign donations from Goldman employees or the fact that his former White House counsel is now lobbying on the company's behalf.

"No," he said flatly. "I raised a lot of money from a lot of people."

The president's spokesman Robert Gibbs told reporters yesterday he has not heard anyone inside the White House suggest that Obama should return any of the Goldman money.

Obama will visit the city today to deliver a speech on the importance of passing the Democratic financial-regulation reform bill that is currently moving through the Senate but has failed to attract a single Republican supporter.

churt@nypost.com

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Comments (33)

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Baloney

04/24/2010 3:35 PM

Did you hear the news today from Health & Human Services report that the obami health deform bill will actually RAISE the cost of your insurance. The lying democrap in the oval office could care less.
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NightLife

04/23/2010 10:25 AM

Obamination needs to go quickly, he is ruining America every time he opens his lips
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Paladin

04/23/2010 5:49 AM

Health care will not cost you a dime!!!!!

Whats that the 20% VAT tax? Oh thats to pay down the deficit its not for the health care bill????

Remember Im a community organizer so I got lots of experience running things ya know!
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BoobmcNut

04/23/2010 5:25 AM

Read my Lips " Sound familiar ? Just an old wrinkle to a a new lie. TAke your pick. " Read my Lips " Or , No one making under $250,000 a year will be taxed . And taxed in any way, just in case he decides to spin and say he just meant Witholding taxes. Either way, it's tax and spend all over again. Hey, anyone can give away money that doesn't belong to them . But with justice they ususally end up in Prison . Not politicians, they usually end up with monuments, or songs to remember them . Anyone who looks to life here on Earth for honesty or an honest politician , is living in Fantasy Land. I'm afraid we'll all have to die and go to Heaven to realize that dream
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Paladin

04/23/2010 5:14 AM

It is my opinion that those who need to call people silly names during debate and need to feel superior are really insecure and are inferior!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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sinclair

04/22/2010 11:09 PM

You seem to have forgotten Omoron what happened to Bush 41 when he went back on his campaign promise of "no new taxes", he was one and done. With all the cr@p you're shoving down our throats, and if the VAT comes to pass, you yourself are ensuring you will be a one termer as well. Doofus.
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enchanted

04/22/2010 9:50 PM

People work up to June to pay the taxes required. The vat tax if implemented will cripple the economy. This tax might start out low (low is relative) at the beginning, but as seen in Europe grows exponentially. This means that on top of local and state taxes, you will pay an additional 10% plus and in some countries it is 20%! This means if you buy a fridge, car, air conditioner you will have to pay an additional cost of up to 20% for this item. In addition those who manufacture those items will be paying the vat tax for whatever they use to build them, and that too will increase the price of the item.

barack, steve, barry or whatever his name is wants to cripple this country, he wants to take her down to her knees so his socialistic program and islamic/muslim culture religion can take control.

If we are not careful, this man will take control before the elections, and there will be none. However, I have to believe the American people will oust him from office before that happens along with his communist shadow government, peliesi and reid.

God help our country, it is being controlled by a man who sorely hates her and hates everything she stands for.
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Off Duty

04/22/2010 8:37 PM

Forget about November.....we're never gonna make it. Martial law will be implemented before then. Get ready.