“If I have less money, I shouldn’t spend less but tax more”. That is exactly what the French President François Hollande and his Government are doing. Economic principles are obviously upside down. That is the result of socialist economic policies denying reality: the French budget was established on the assumption that taxpayers would continue to spend money as if there were no crisis and as if tax revenues were some kind of annuity. This error can be lethal for French taxpayers.
There is a growing call by backers of bigger government for Congress to impose a value-added tax (VAT) on top of all the other taxes Americans already pay. A VAT is similar to a national retail sales tax but is collected at every stage of business production until its entire burden ultimately falls on the consumer.