Volcker: Taxes likely to rise eventually to tame deficit

[MarketNeutral]

http://www.reuters.com/article/idUSTRE6355N520100406

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.

[Shami-Amourae]

But they'll totally stop growing government once they get all these taxes. DON'T WORRY!

[Spectrism]

Sure, another 12 or 15 % on top of existing taxes would fix things up just swell!

And, btw- did we not know that we are under-taxed compared with the Europeans? We are not contributing enough- greedy Amerikans- and this is why we have such large deficits and we are destroying the world with our greed. We need more taxes!

[Osky]

Let's see - consumer consumption is (or was) 70% of our economy, the consumer is drowning under a massive debtload, wages are dropping, people are scraping by on unemployment and odd jobs - I KNOW! - let's add a national sales tax on everything! (A vat is actually much worse) What a brilliant idea, Volcker!

Morons.

[Rebel Yarr]

This is a good reason to simply not own anything right now - that isn't paying for itself. At least for those of us working and middle class folks.

This shit is going to get ugly - I feel bad for anyone who is just starting to prepare for what is coming our way.

[Hellsbane]

Well OF FREAKIN COURSE taxes will rise to stem the bloodflow! What, did you honestly expect government to go on a diet and lose the excess tonage?

[Ponce]

The only ones to benefit would be the government workers, even a raise in tax would not be enough for the wars that we are having at this time.