White House Economic Adviser, Paul Volcker, Says Tax Increases May Be Necessary

Posted on April 6, 2010

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From Reuters:

The United States should consider raising taxes to help bring deficits under control and may need to consider a European-style value-added tax, White House adviser Paul Volcker said on Tuesday.

Volcker, answering a question from the audience at a New York Historical Society event, said the value-added tax “was not as toxic an idea” as it has been in the past and also said a carbon or other energy-related tax may become necessary.

Though he acknowledged that both were still unpopular ideas, he said getting entitlement costs and the U.S. budget deficit under control may require such moves. “If at the end of the day we need to raise taxes, we should raise taxes,” he said.

In order to pay for all the entitlements the government seems intent on handing out, the taxpayers will once again be forced to pony up.    So much for Obama’s promise not to increase taxes on those making less than $250,000/year.

Why are entitlement cuts never even discussed, let alone ever contemplated? They may not be popular, but even more unpopular these days are the people in congress who seem to show no respect to the constituents who are paying the bills.  If the politicians wish to keep their jobs, they need to start acting more responsibly with our money.