19th
Apr
2010

Obama Spokesman on VAT Tax: Not Under Consideration

Posted by Admin

This is a business blog, so I do my best to avoid talk of politics. The lone exception to that is when the news seriously effects the future of business in America and worldwide. This is one of those few cases–but I will offer no ideological or partisan commentary whatsoever.

President Obama is not considering any sort of Value Added Tax, his spokesman said today.The Value Added Tax — a form of sales tax that is assessed at each stage of manufacture and distribution — has been much discussed since White House outside adviser Paul Volcker raised the topic recently.

But “this is not something the president has proposed, nor is it under consideration,” spokesman Robert Gibbs said.

A VAT tax is essentially a sales tax and certainly would have an effect on business, for better or for worse. It should be interesting to see what the business sector says about the idea if it IS under consideration.