Pelosi suggests VAT possible – end to employer-based plans

So much for not increasing taxes on any family making more than 200k. Nancy Pelosi (D-Calif.) is putting a value added tax (VAT) – and other taxes – on the table. To be clear, Pelosi is not suggesting replacing the federal income tax with a VAT, but she is strongly suggesting the elimination of all employer-based health insurance and pension plans.

It’s never enough for liberals at the federal level. They never have to do with less, but they demand the Americans – in the case of a VAT all Americans – pay more for goods and services across the board to pay for federal pork.

We know what the solution is – treat the actual disease, not just the symptoms – but conservatives continue to be ignored.

From The Hill earlier today, with my emphasis in bold.

The VAT is a tax on manufacturers at each stage of production on the amount of value an additional producer adds to a product.

Pelosi argued that the VAT would level the playing field between U.S. and foreign manufacturers, the latter of which do not have pension and healthcare costs included in the price of their goods because their governments provide those services, financed by similar taxes.

“They get a tax off of that and they use that money to pay the healthcare for their own workers,” Pelosi said, using the example of auto manufacturers. “So their cars coming into our country don’t have a healthcare component cost.

Level the playing field? I certainly do not understand that statement since Pelosi is not saying that a VAT would replace portions of corporate, business or personal income tax. Is she expecting the U.S. manufactures to pick up both the health care costs and the VAT? After all, many foreign manufactures – as she notes herself – do not have to pay health insurance costs since single payer is the game.

No! Read the following carefully. There is only one way her “level the playing field” comment works out.

Pelosi’s statement is a clear indicator she is expecting a single payer system. She expects the end of employer sponsored plans to be replaced by a federal program! She’s also suggesting that the government take over company pension plans!

This is exactly what they want and this is not a surprise.

Pelosi also notes…

… any reworking of the tax code would not result in an increase in taxes on middle-class Americans.

Right. You, Madam Speaker, are a liar!

Of course after writing this I just realized Allah at Hot Air has a similar review. Sister Toldjah links us to a well-put-together piece detailing Obama administration moves concerning the VAT written by James Petokoukis at Political Risk. Please click on this link to read Petokoukis’ full article, but here he connects some dots…

  1. The joint statement from the just-concluded G20 Summit in Pittsburgh called for balanced global growth — which means Americans must spend less and save more and reduce its budget deficit.
  2. That same weekend, John Podesta, co-chairman of Obama’s presidential transition team and an outside White House adviser, tells a Bloomberg reporter that a value-added tax is “more plausible today” than ever, adding that “there’s going to have to be revenue in this budget.” A VAT is a kind of consumption tax.
  3. Yesterday, the Center for American Progress, the liberal think tank with close White House ties, holds a conference on the rising national debt. While speaker after speaker — Paul Krugman, Roger Altman, CAP President Podesta (again), Laura Tyson — admits entitlement spending must be reduced, they also agree that taxes must be raised. Altman suggests $400 billion in new tax revenue is needed almost immediately to calm financial market fears, and a VAT would be a great way of doing it. That’s $400 billion a year, by the way, not over ten years.
  4. Also, yesterday was the first meeting of President Obama’s tax reform panel led by former Federal Reserve Chairman Paul Volcker. In a two-part interview with Charlie Rose airing yesterday and today, Volcker says that if Washington can’t get spending under control, either a VAT or a carbon tax would be effective revenue raisers. “Those are two big ones,” he says.
  5. As they used to say in the Soviet Union, “It’s no coincidence.” This is also the conclusion of one Washington insider with ties to the White House economic team: “Does this all add up to a trial balloon? Of course, it’s a trial balloon. And I expect the administration will propose major tax reform, including a VAT.”

Are you getting the picture? For those of you who really think liberals don’t want to take over the health care system in full, how can you explain away these statements and positions?

For the 80-plus percent of you who are happy with your health care what say you? If you have insurance with a private company like Aetna, Blue Cross/Blue Shield, Cigna, UnitedHealthcare and others; what this means is those companies go away – replaced by a federal bureaucracy.

Get ready.

[poll id=”195″]

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Steve McGough

Steve's a part-time conservative blogger. Steve grew up in Connecticut and has lived in Washington, D.C. and the Bahamas. He resides in Connecticut, where he’s comfortable six months of the year.


  1. Anne-EH on October 6, 2009 at 4:53 pm

    This should come as no suprise at all since like Obama, Pelosi wants to see both the healthcare and pensions systems in this country go the way of often support European socialist nations.

  2. Dimsdale on October 7, 2009 at 6:36 am

    "Value added tax" is such a misnomer.  I mean, seriously: how does increasing the price of goods and services almost exponentially increase the value of anything at all?    Maybe we could call it a "Socialism added tax" or, more aptly, the "Obama tax".


    They say they have to cut spending and raise taxes, but they will do the latter first, then say, "Look!  We have money now, so we don't need to cut!"  Nudge, nudge, wink, wink….


    Weren't the high property taxes in CT supposed to be dropped with the adoption of the state income tax?   How is that working out for you guys?


    The only solution for the Social Democrats is "raise taxes".  It is reflexive for them, as it allows class warfare and gives them power over the money.   The "tax and spend" Democrat is alive and well.

  3. comanchepilot on October 8, 2009 at 6:16 am

    Hey – I'm ok with a VAT so long as we repeal the 16th Amendment along with it . . .

  4. brianh on October 8, 2009 at 5:26 pm

    This is the post of the week…deserves air time.

    Why did our forefathers fight the Revolutionary War?

    Seniors will get to pay a VAT on there savings.

    On top of having their medicare payments spent on current workers healthcare.

    On top of getting paid only 1% interest on savings so banks can make big $s!

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