On occasion, the “World’s Greatest Deliberative Body” will do something that makes sense. It appears that last week, we arrived at one of those auspicious moments:
Bipartisanship has broken out in the Senate, not that the media bothered to notice. Last week John McCain introduced a resolution stating that “It is the sense of the Senate that the Value Added Tax is a massive tax increase that will cripple families on fixed income and only further push back America’s economic recovery.” The resolution passed 85 to 13.
For those who are not aware, a VAT is a “Value Added Tax” in which a tax is applied at every stage of production of a product (or whenever “value is added” to a product). The Wall Street Journal notes:
The typical VAT rate in Europe is close to 20%. That’s about how high a VAT would have to be in the U.S. to balance the federal budget, according to the Tax Foundation. Mr. McCain said about his VAT resolution that “With the economy in such bad shape, we should be cutting tax rates now, shouldn’t we?”
Hey, that makes sense, right? I mean, right now we don’t want to do anything to discourage people from producing things or to keep consumers from purchasing them. And a VAT would surely do that, seeing as how it would raise the cost of everything by around 20%. Hence the large margin of passage of the McCain’s sense of the Senate resolution. I mean, who would be dumb enough to support a VAT right now, especially considering that the people are far more concerned about out-of-control government spending, deficits, and debt?
Carl Levin would be, it turns out. Heck, even Debbie Stabenow wasn’t stupid enough to vote no on this resolution.
Who can discern why Michigan is in the national economic dumpster right now? It’s a mystery, I tell you.