Tax Reform Bill Passes!

Happy Tax Day 2017!

Sunday Comics - The Week in Review

End of the week. Finish line.

Charlie Sheen is nuts - and that is the MOST important issue in America, nay, the world right now. Now, just so that no one forgets, everyone was caught up on what a nut job Anne Hache was the days before September 11th. So, just saying.

Meanwhile, Sheen is a master - he has successfully ended that vile steaming pile of sitcom. Let the man have a victory dance.
Libya isn't revolting, they're falling into full blown Civil War. The sooner that the Colonel "leaves" the better it will be for everyone.
Meantime, how's that revolution reverberating everywhere else? Well, all politics are local - as Uncle Tip O'Neil used to say.

I particularly liked this one...And the SCOTUS decided to read the First Amendment out loud, again, to come up with their decision. Not a popular one, to be sure, but it was the correct one.
We made it. See you here next time.

New Chariman

So, amazingly, this just happened...

Pat Quinn named chairman of Midwestern Governors Association

"I am honored to become Chairman of the Midwestern Governors Association. The association has a long history of governors who are committed to working together to improve our entire region, and I look forward to continuing that legacy," said Governor Quinn. "Now, more than ever, we need to band together to create sustained economic growth and success throughout the Midwest."

Governor Quinn assumed office on Monday, January 10, 2011 and will serve as chair through February of 2012.

The other governors must have awarded him this honor because he's going to increase their revenues so much from the stampede to get the hell out of Illinois - or Quinn is just so damn good at lying that they decided to make him their leader. Maybe he promised he was only going to raise their dues 'a little bit.'

"Sometimes I think you WANT to fail" ~ Restaurant employee #1, from my favorite Simpsons episode, New Kid on the Block (1992)

Sweet, sweet Jebus.

Stupid Indiana Flanders

Two governors in states bordering Illinois are celebrating the Prairie State's massive tax increase.

"You guys are nothing if not entertaining. It's like living next door to the Simpsons — the dysfunctional family down the block." ~Indiana Gov. Mitch Daniels, commenting on Tuesday's rush to raise taxes in Springfield, IL

Wisconsin's new governor, Scott Walker, is more succinct: "Escape to Wisconsin."

Bill Ecton, 54, owns Ecton's True Value Hardware in Robinson, Ill., just a few miles from the Indiana border. He was resigned to the fact that Illinois ultimately would raise taxes to repair the budget, but he said the taxes will take a toll.

"If I have to pay more to the state, it's money that I can't pay out in wages," Ecton said. "I'm not saying I'm laying people off, but maybe I'm going to look twice at adding another one."

Healthcare Setback

I gotten around to mentioning that the first major wound has been administered to the ObamaCare legislation - but it's kind of interesting that someone agreed with me about the Commerce Clause in the Constitution - but also because they used it on the Republican provision.

Federal judge Henry Hudson declared in his 42-page opinion that the law’s requirement for most Americans to obtain health insurance was unconstitutional:

“Neither the Supreme Court nor any federal circuit court of appeals has extended Commerce Clause powers to compel an individual to involuntarily enter the stream of commerce by purchasing a commodity in the private market.”

To simplify this argument - Imagine Congress passed a law that required EVERY American to buy a gun. Soak that in for a moment.

Hudson also wrote that allowing Congress to exercise such authority “would invite unbridled exercise of federal police powers.”

Full repeal by the Republicans would be a long, difficult fight - and no doubt, they're not up for that kind of challenge. This ruling gives them a boost of wind to that sail, should they accept the challenge. The individual mandate was the lynchpin upon which the entire health care law stood. It's what Hillary and John McCain campaigned on - and what the Insurance Companies demanded, and Obama caved into agreeing upon.

A significant portion of the funding was to come through the fines that were to be collected from those who fail to purchase insurance - enforced by the IRS. The rational behind requiring insurance companies to accept those with pre-existing conditions was predicated upon a requirement that all people are required to be insured, otherwise people will simply sign up for insurance once they get sick -- which I happen to believe as well. The old, I'll just call Allstate right after I rear-end the school bus argument.

So if the foundation of this legislation was built on a swamp - how soon 'til this whole thing just rots away or falls in on itself? How much collateral damage will be done first before the dust settles?

Click here to read Virginia Attorney General Ken Cuccinelli's analysis.

Guess Who Didn't Pay Their Taxes?

DNC and Dems’ Private Club Delinquent on Taxes 16 Times in 7 Years (PJM Exclusive)

Wait, Joe Biden said that paying higher taxes is patriotic? The Democratic National Committee and their private dining establishment in D.C., the National Democratic Club, are serious tax scofflaws.

Apparently, the DNC was having trouble running their events as a business, and even after they turned a corner after raising fees and drink prices - they still didn't pay their back taxes.

The Democratic National Committee and the party’s private club in the nation’s capitol have been delinquent with tax payments on sixteen separate occasions over the last seven years, Pajamas Media has learned - and can't wait to tell everyone.

According to District of Columbia government records, since 2004 the Democrats’ main political committee and its National Democratic Club — an exclusive restaurant and hideaway on Capitol Hill where prominent Democrats and their guests dine — have been hit with fines and interest penalties in excess of $115,000 for failure to pay their property taxes on time. But, but - they're Democrats! Democrats don't pay taxes!

In all fairness, it's because Ted Kennedy's estate still hasn't paid his bar tab.

And Pajamas Media sent "Joe" "the Plumber" to Israel as a war correspondent - which I think needs to be mentioned pretty much everytime someone says Pajamas Media.

French Riots

Rioters Rampage, Protesters Block French Airports
PARIS (AP) - Workers opposed to a higher retirement age blocked access to airports in Paris and around the country on Wednesday as hooded youths smashed store windows amid clouds of tear gas outside the capital.

Riot police in black body armor forced striking workers away from blocked fuel depots in western France, restoring gasoline to areas where pumps were dry after weeks of protests over the government proposal raising the age from 60 to 62.

Read more ....

60 to 62? Hey France - go to hell. Many workers feel the change would be a first step in eroding France's social benefits - which include long vacations, contracts that make it hard for employers to lay off workers and a state-subsidized health care system - in favor of "American-style capitalism." Really? Well you got the bitching about everything right - that's American. But 62? Really, seriously, go to hell.

UPDATE: Okay, after thinking this over more, and having a discussion with some folks - I think I understand it a little more. There is a breakdown of the social contract the French people made with their government. They pay 50% of their earned income, while they earn, to have the society that supports them past age 60.

USA - Personal taxes ~28-29% France - Personal taxes ~50% source

The government has failed them, and the social contract has been broken. The government needs two more years of labor to support the incredible cost to support the non-earners in their society.

Maybe I'd be more impressed that the workers are standing up for themselves if "Europeans on Strike" wasn't a cliché.

Tax Hike Debate

Mr. Obama wants to extend the Bush tax cuts for everyone except the wealthiest 2 percent, but Republicans and some moderate Democrats argue that a tax increase on wealthy Americans will further weaken the economy. Both parties know their position on the issue could have an impact in November....

IT'S THE SPENDING, STUPID!

Or, you could even say, It's the STUPID SPENDING!

I expect to see these on T-Shirts, people.

No Compromise

Obama Rules Out Compromise to Extend Bush-Era Tax Cuts for Wealthy

President Obama will rule out on Wednesday any compromise that would extend the Bush-era tax cuts for the wealthy beyond this year, officials said, adding a populist twist to an election-season economic package that is otherwise designed to entice support from big businesses and their Republican allies.

Mr. Obama's opposition to allowing the high-end tax cuts to remain in place for even another year or two would be the signal many Congressional Democrats have been awaiting as they prepare for a showdown with Republicans on the issue and ends speculation that the White House might be open to an extension.

Mr. Obama finally has decided that the show of 'reaching across the aisle' and 'bipartisanship' needs to close it's curtain? It's only been close to 19 months.

This is a political show. He's trying, nay, daring the Republicans to oppose him on this - just in time for November. How funny.

Just so we're clear - where's THIS guy been?

Hypocrite of the Week?

Ex-IRS agent pleads guilty

A former IRS tax specialist admitted in federal court in Maryland that he owes more than $789,000 in overdue taxes, federal authorities said. How much? 800K?

John Venuti, 62, of Harwood, Md, pleaded guilty Tuesday in U.S. District Court in Baltimore to three counts of failing to file a federal income tax return, according to the U.S. Attorney's Office in Maryland.

Venuti worked at the accounting firm KPMG LLP from 2002 until January as a tax consultant and principal, court documents state. He worked for the IRS from 1974 to 1983, including three years during which he was chief of the Tax Treaty and Technical Services Division.

According to the plea agreement, Venuti did not file federal tax returns from 2001 to 2006. Each year, though, he requested and was granted a six-month extension, and made a total of $97,060 in payments along with the extension requests. Authorities said he owes more than $789,000 in back taxes.

In July 2008, after he was told he was under criminal investigation, Venuti submitted tax returns for the tax years 2001 to 2006, authorities said.

Venuti faces a maximum sentence of one year in prison for each of the three counts. He is scheduled to be sentenced Nov. 2.

You bet that Venuti is in the running for...
Blasphemes Hypocrite of the Week

--report comes from Maria Glod

Internet Sales Tax

Massachusetts Rep. Bill Delahunt (re)introduced a bill called the "Main Street Fairness Act," which, not only is a stupid name for a bill, really ought to be called "Hey guys, I can't believe we're not taxing the Internet Act". The text of the bill still hasn't been released yet, but if passed, it would presumably set up a process where sales tax could be collected on purchases made over the Internet. As anyone who has shopped online over the past decade is probably aware, this has been an ongoing and thorny issue, since billions in online sales tax would provide a welcome revenue stream for States that are so deep in debt, they're making Greek debt look like a solid investment. California, Illinois I'm pointing and staring at both of you. I'll get to you next, New York.

Good old Internet sales tax, that Delahunt introduced way back in 2007 and that it's been an ongoing fight without much forward momentum as Audit the Fed... If you're for it, you can also take heart; as CNET notes, "With states scrambling for new sources of revenue during what may be a double-dip recession, pro-tax lobbyists are hoping that they'll have better luck this year."

"Democrats push for new Internet sales taxes" [CNET]

You know what, Mr. Delahunt, I go out of my way to make my purchases online to circumvent the cousin and cronies corruption tax. If you take that one method of protest away from me, I'm going to have to stop typing and start marching. And organizing. And you know what, you'll be on my list of incumbents to kick as far out of office as possible.

PS, You already got the internet kill switch - is this your idea of 'let's pour salt on it's grave?'

PPS, If you want to kill small businesses and innovation - this is better and quicker than mustard gas.

Gas Tax Increase

Democratic Senate and House 'leaders' have agreed on a 300 percent increase in the oil excise tax. Get off your chair. It means, 32 cents a barrel from the current 8 cents.

The hike is as part of the tax and spending bill likely to be approved this week. So you can expect gasoline prices to rise down the road. Very Chicago.

The tax pays for the Oil Spill Liability Trust Fund, which now totals about $1.6 billion. The fund will likely be decimated by the economic damages arising from the BP oil spill. But, but, wasn't BP going to be solely responsible for... the... spill?

The new rate would be effective in the first quarter that begins 60 days after the bill is enacted, which could mean this October. It would last through the end of 2020.

The tax increase, which was included as part of a broader package that also extends jobless benefits, would be effective through the end of 2020. There is no way it won't get passed, in other words.

Ironically, some oil industry executives actually want a tax increase, hoping it will forestall efforts to raise the liability cap on companies responsible for offshore disasters. Joke's on them. Congress will tax and then hit the oil companies with the liability cap. But not until they take a couple 'meetings' and fundraisers from oil barons.

As for gasoline prices, the recent 20 percent drop in crude oil provides a positive note for consumers near-term.

"We expect retail gasoline prices to fall even as Memorial Day approaches," Tancred Lidderdale, a senior economist at the federal Energy Information Administration.

My recommendation would be to stock up on that gasoline - but it doesn't store too well. So instead buy a bike.

Sunday Comics: Week in Review

Ah, we've finally come to the end of the week.

There was an election. It wasn't definitive, so there's a power grab going on, afterward. And speaking of things going on in Europe...
Looks like the Greek bailout is going to put the entire idea of a European Union into jeopardy. The "I don't want to work" and "give me a check" riots have killed at least 3 people. Insanity and the Welfare State. But don't wag your finger of shame too hard at the E.U. The U.S. has Illinois, California and New York on the the bail out fences as well. California was even considering a complete 'do over' and just giving the state back to the Federal government. Maybe Greece will just be a new part of Germany? ...er, again?
Every time Mr. Obama yells at BP, I know that gas prices are going to go up. Funny that he doesn't understand this?
American-wanna-be-a-Taliban in New York Times Square, luckily, failed. How much involvement or training he actually got is anyone's guess. Again, and luckily, it wasn't much.
And the exposure of exactly how weak the Patriot Act, the NSA, the CIA, the FBI and all the other so-called leaders we have... apparently their best weapon is Luck. That's not good enough to stop the next one, but for now, it's all we got. Oh, and two heroes, one an Immigrant who LOVES his new home who called it in.
See you next week, folks.

Thousands of protesters at Illinois Capitol demand tax INCREASE

What's the antonym of a Tea Bag?

The Hand Outs?

Thousands of protesters bused down by labor unions and social service advocates rallied at the Capitol today in an attempt to pressure state lawmakers into raising the income tax to avoid more budget cuts. Obviously these people didn't have anything else to do on Wednesday?

Illinois Secretary of State Jesse White's office estimated the rally crowd at 15,000, with more than 12,000 marching around the building. That would appear to make it the largest Capitol protest since the Equal Rights Amendment crowds a quarter-century ago.

Bus after bus pulled up on streets surrounding the Capitol complex and dumped sign-waving protesters clad in purple, green, red and blue shirts that represented a show of strength from a variety of public employee unions (wouldn't ONE color do that more effectively?) and dozens of groups that formed what they named the “Responsible Budget Coalition.”

"Raise my taxes! Raise my taxes! Raise my taxes!" they chanted, lined up shoulder to shoulder for a few hundred yards stretching a street in front of the Capitol.

"These 177 people who have a job don't want to do their job," said Henry Bayer, head of the Illinois chapter of the American Federation of State, County and Municipal Employees, referring to the number of lawmakers in the House and Senate. "Yes people are hurting, that's why we need a tax increase....If you try to leave town without doing your job we're going to chase you." And no one once asked if they sent some of their pay, which is generated only from tax revenue if they sent any of it back? Or why there is a budget crisis, which is tied directly to their bloated pensions granted to them from the indited former Gov. Blago? No - that would be reporting.

The un-indited current Gov. Pat "Mighty" Quinn is pushing a 33 percent increase in the state income tax rate --- taking it from 3 percent to 4 percent --- to prevent cuts in state spending. Quinn has suggested that education will bear the brunt of the cuts, although that would have to be negotiated with the General Assembly. Which means nothing is going to happen since it's an election year.

Organized labor showed up in force to pressure lawmakers to change their minds.

Nightlight Solar

Solar power installations in Spain were producing power at night.... Why? How?

…The prices paid for green energy were so high that it appeared to be profitable to generate that energy by shining conventionally fueled arclights on the solar panels.

Truth tends to be stranger than fiction:

Although the exact details are slightly different there is now an intriguing report of the scam in practice. The text is based on a machine translation of the original German text:

After press reports, it was established during inspections that several solar power plants were generating current and feeding it into the net at night. To simulate a larger installation capacity, the operators connected diesel generators.

“This is just the tip of the iceberg,” said one industry expert to the newspaper “El Mundo”, which brought the scandal to light. If solar systems apparently produce current in the dark, will be noticed sooner or later. However, if electricity generators were connected during daytime, the swindle would hardly be noticed.

As I said last time around, this is the insanity of greenery.

Here is the Google Translation of the article.

You too can generate energy with your solar system at night, all you need is an 850 million candlepower WWII era searchlight, now available for rent.

Hey, it’s not crazy. There are so many fees, taxes, add ons, etc to power bills in California now it is actually cheaper to generate your own electricity running a diesel generator than it is to buy it from PG&E. Anyone have a used diesel-electric locomotive I can buy? Thanks Watts Up

---

Tax Day

Tax Day.

Keep in mind that with the exception of the Civil War, the American people lived without an income tax from the beginning of the United States until 1913, when the 16th Amendment was adopted.

Americans living during that period of time understood that freedom and an income tax were contradictory notions. If people wanted to live in a free society, it would have to be a society in which government was prohibited from levying taxes on income. Conversely, if people wanted to live in a society in which government is taxing income, then the price they pay is the loss of freedom.

In an income-tax free society, everyone is free to keep the fruits of his earnings. He keeps everything he earns. He is free to accumulate unlimited amounts of wealth. He is free to do whatever he wants with his own money. He also has to keep the retarded child and the elderly mother-in-law in the house and is expected to take care of them by themselves. Their burden is all their own.

And there is nothing the government can do about it because the government is prohibited from taking any portion of a person’s income from him. There is also no responsibility from a government who's primary concerns are the 1) Defense of the nation, 2) the Post Office.

There was no IRS. There were no income-tax returns. There were no deductions to keep track of. There is no need to keep records.

There was no withholding tax.

Again, everyone simply keeps everything he earns and decides for himself how to spend it, invest it, donate it, or otherwise dispose of it. But there was also no help from anyone but your bootstrapping self. If you didn't invest, or gave the deed to the farm to a snake oil salesman, well - too bad. Pull up those boot straps and quit whining.

Americans lived without an income tax for more than 100 years.

Everything changed in 1913, when newfangled ideas about fairness and the role of the government were being imported from Europe into the United States. That was the watershed year, the year that brought into existence what would become the twin jugular veins for the "welfare state and warfare state" — the income tax and the Federal Reserve System. The Evil Fed.

From that date forward and continuing through today, Americans would be coerced, on pain of fine and imprisonment, into sending some governmentally imposed percentage of their income to the IRS.

But there was also a safety net - which was so new fangled an idea, FDR actually called it "The New Deal." Kind of saying "do over."

Most folks will tell you they like their corporate job and also like teachers and schools, along with sex drugs and rock and roll. You leave me alone, I'll do so in kind to you. Americans, for the most part, are libertarian and don't even know it. The government (was) already a very big thing that didn't need to get any bigger. The social issues like gay marriage and abortion didn't impact them on a daily basis, if ever. Some see the ballooning government as an encroachment of their liberty. I see their point.

However, make a list of all those great government services that you take for granted... the Eisenhower Expressway System, the EPA, the FDA, the FCC, the IRS, The Fed, The CIA, MX Missiles... er, uh, let's stop this exercise?

So be a good little citizen. Pay your taxes. Plop on the couch with a KFC Double Down, and watch American Idol until you fall asleep. That's a good boy. Roll over.

Tax Day Free Crap!

Ah, Tax Day. After filing your extension, head to these places of business for free, or almost free, goodies. It's just their way off offering a little "Tax Relief".

Boston Market: Individual dinner plates BOGO Free
04/15/2010 through 04/18/2010.
Cinnabon - 2 Free Cupcake Bites on 04/15/2010 between 6pm and 8pm.
HydroMassage - Free massages 04/15/2010 through 04/18/2010.
MaggieMoo's - Free sample of MaggieMia's Ice Cream Pizza on 04/15/2010 between 3pm and 7pm.
McCormick & Schmick's - $10.40 dinner specials & drink specials at the bar.
P.F. Chang's - 15% off food purchases all day
Starbucks - Bring in a reusable travel mug & get free brewed coffee
Taco Del Mar - Free taco per customer
McDonald's - Select restaurants to offer BOGO Free Southern Style Chicken Biscuit
Subway - Free cookie for all customers
Chick-fil-a - Return before April 30th to receive the same order for free
T.G.I. Friday's - Diners receive a $5 gift card w/purchase of $15-$25 or a $10 card w/purchases of $25 or more

Some offers may only be valid at select stores/restaurants. See your local businesses for details.

Journalists are Shocked, Shocked to See Tea Bag Poll

Poll Finds Tea Party Backers Wealthier and More Educated

Tea Party supporters are wealthier and more well-educated ... than the general public, and tend to be Republican, white, male and married, according to the latest New York Times/CBS News poll.

Oh my god.

The New York Times finally left their office and you know - polled some of the Tea Baggers?

Their responses are like the general public’s in many ways. Most describe the amount they paid in taxes this year as “fair.” Most send their children to public schools. A plurality do not think Sarah Palin is qualified to be president, and, despite their push for smaller government, they think that Social Security and Medicare are worth the cost to taxpayers. They actually are just as likely as Americans as a whole to have returned their census forms, though some conservative leaders have urged a boycott.

But they are, "Angry," according to the poll.

And what are they angry about? They feel that Obama and the Congress are re-distributing wealth from the rich and middle class to the poor. Which is, they are being taxed, and then taxed more, and their services haven't gotten any better - and their State and local governments are cutting services, while raising fees and taxes - and have nothing to show for it.

Oh, and they're racist. You betcha'. They think too much attention is being made on African American problems. 25 percent of the tea baggers polled this belief, over 11 of the general public. Push poll? Nah! Also proves the 1 in 4 rule posed by South Park: 1 in 4 people is a complete moron.

So what else are they angry about? According to the poll, that is?

"Tea Party supporters offered three main concerns: the recent health care overhaul, government spending and a feeling that their opinions are not represented in Washington."

While most folks blame Bush or Wall Street, or I'm sure some combination of those two, for the current state of the economy, most polled Tea Baggers blame Congress.

They do not want a third party and say they usually or almost always vote Republican.

Pictured is Vince Schuck at a rally in Montpelier, Vt. Photo by Toby Talbot / AP.

VAT: You Don't Want That!

One of President Obama's top economic advisers, former Fed chief Paul Volcker, suggested this week that it's time for America to adopt a VAT, or value-added tax. The White House yesterday downplayed the idea -- but it's sure to pop up again. They're going to have to pay for this free spending binge.

The VAT -- on top of all the other taxes Washington imposes -- is a terrible idea. Imposing it would pretty well finish the transformation of our country into a Europe2. The right way to close Uncle Sam's gaping deficits is to reverse the continued explosion of federal spending.

The VAT is a type of national sales tax, levied on the value-added at each stage of production. Consider a piece of furniture: The VAT would be imposed when the raw timber is sold, when the sawmill produces lumber, when the manufacturer builds a chair, a tax at the wholesaler level and then when a retailer sells the chair to a consumer.

To avoid double taxation, each seller along the way gets a credit for taxes paid at earlier stages of the production process. So the final tax to the consumer, at least in theory, is the same as a retail sales tax of the same amount.

The VAT has its virtues: As a single-rate, consumption-based system, much like the flat tax or national sales tax, it would introduce far fewer economic distortions than today's income tax -- and a less paperwork.

That would be a persuasive argument -- if proponents wanted a VAT to replace the Internal Revenue code. But that's not what's intended by Volcker -- or Senate Budget Committee Chairman Kent Conrad and House Speaker Nancy Pelosi, who've also been chatting up the VAT.

The politicians want a VAT, and they want to keep the income tax. (To be more accurate, they want a VAT and to raise other taxes as well.)

They want the cash, of course, so they can continue buying votes by spending other people's money.

This decade already has seen a huge expansion of government. In the Bush years, federal spending rose from $1.8 trillion in 2001 to $3.5 trillion in the last Bush budget. Now President Obama is well on the way to doubling outlays yet again.

He has already saddled the economy with $800 billion of "stimulus" and a giant new health-care entitlement, and his proposals for next year will push the federal budget even higher.

Meanwhile, our aging population and the built-in growth in federal programs like Medicare, Medicaid and Social Security has a dramatic expansion in the size of government set to occur automatically in coming decades.

Simply stated, there's no way to finance all this new spending without an added broad-based tax. But this is exactly why we should vigorously resist a VAT.

Blocking a VAT may not be sufficient to control the size of government, but it's necessary. Handing Washington a whole new source of revenue would be akin to giving keys to a liquor store to a bunch of alcoholics.

The real-world evidence shows that VATs are strongly linked with both higher overall tax burdens and more government spending. In 1965, before the VAT swept across Europe, the average tax burden for advanced European economies (the EU-15) was 27.7 percent of economic output, versus 24.7 percent of GDP in the United States.

But the Europeans began imposing VATs in the late 1960s, and now the European Union requires all members to have a VAT of at least 15 percent. Good news has not followed. By 2006, the average tax burden for EU-15 nations had climbed to 39.8 percent, versus 28 percent in the United States.

The spending side? In 1965, pre-VAT, government spending in EU-15 nations averaged 30.1 percent of GDP, against 28.3 percent in the United States. By 2007, government spending consumed 47.1 percent of GDP in EU-15, significantly higher than the US burden of 35.3 percent.

Nor has the VAT stopped Europe from raising other taxes.

Taxes on income and profits consumed 8.8 percent of GDP in Europe in 1965 -- below the US level of 11.9 percent. By 2006, the European burden had climbed to 13.8 percent of GDP, slightly higher than the 13.5 percent US figure. (The same trend holds for corporate-tax data.)

Today's income-tax system is a nightmarish combination of class warfare and corrupt loopholes. But adding a VAT solves none of those problems, it merely gives politicians more money to spend and a chance to auction off a new set of tax breaks to interest groups. That's good for Washington, but bad for America.

Daniel J. Mitchell