Now that President Obama and the Democrats have spent the country into oblivion, their plan's next phase can commence...  The Value Added Tax or VAT.  There is one in the EU.  Essentially, a tax is added at every step of a product's life cycle from manufacture to purchase.  A hidden tax.  You won't see it on your bill, but believe me, your purchase price reflects it.  Similar to those other hidden "taxes" like lawsuits, regulation compliance, etc...  I'll focus on the VAT here.  Now, a VAT isn't all bad.  It is a consumption tax.  Use less and pay less tax.  A lot of people have argued for a consumption tax and zero Federal tax before.  George Will makes such a brilliant argument here.  Why not only pay for the government you use?  That was the point way back at the founding.  Now the VAT has just become a way for Big Government spending to be continued without cuts.  More spending later? Raise the VAT.  Want a new government program?  Raise the VAT!  You get the point.  Government will NEVER be able to live within its means.  I believe that there should be a Constitutional amendment mandating a balanced budget.  Well, unless war has been declared.  The balancing must come from cuts first, and then perhaps taxes.  Government should be forced to live on what it takes in!  That is all fantasy for now because the politicians love our money ever more than their own.  A VAT can make sense though.  I have a question?  Why is it a "Value Added Tax?"  What value was added?  Does your purchase become a collectible the minute you walk out of the store due to the VAT?  Can you resell it for a profit?  Nope.  Why not just call it a Federal Sales Tax?  Or "Taxes Added to the Value?"  TAV.  Well, they can't because that would make it the whole idea of a VAT less appealing.  You see, Government is in the business of marketing as well.  The reminds me...  I wonder how the state of MN would "market" my $425 car registration license renewal fee?  Is that a "Grand Touring" tax?  I seriously about had a heart attack!  $425!  It had never been much more than $100 prior on similar cars at similar years of service.  I don't know what the heck this fee pays for aside from a lot of slow DMV employees, but the rate is crap.  How does it cost more to administer a rusty clunker compared to my ride?  I have car insurance.  I pay for my drivers license.  I pay the same gas taxes as everyone else, etc...  How the heck does it cost more?  Answer...  It doesn't.  The state of MN had a budget gap due to out of control spending and filled it with taxes deemed politically feasible. That means it wouldn't cost them votes come Nov in their minds.  So now my car registration dollars are going into the general fund for whatever.  Welcome disguised VAT!  Your VAT taxes will go into the Federal governments "Whatever" program in kind.  Ugh!