Liberal commentator Nancy Skinner conceded there is one issue the right is right on – the value-added tax (VAT) is an absurd idea.
Skinner who is a regular guest on the Fox Business Network, stated April 7 that the VAT will do absolutely nothing to help the ailing economy, concurring with the “Bulls and Bears” panel.
“Everybody, you’re going to be surprised: I finally found a tax I don’t like, and it’s this VAT tax!” Skinner exclaimed. “Here’s why – it doesn't produce any behavioral changes – it’s hidden as Gerri Willis said. What you want in a tax is a tax that changes behavior.”
As Reuters reported April 6, White House adviser Paul Volcker – of the Larry Summers school of economics – threw out a trial-balloon recently, saying the
Skinner prefers using taxes for social engineering, and cited cap-and-trade as an example.
“That is why a cap and trade tax – it moves from fossil fuels to try to move us just like the baggage issue into clean energy technologies that spur growth. This does nothing,” she said.
“Look this is very basic economics, taxes do one thing – they regulate demand,”
“They did this in 1937. They did it in
“This is a dumb idea, we are facing a demand crisis,”