"And current Fed Chairman Ben Bernanke warned that 'to avoid large and ultimately unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above.' Bernanke knows, of course, that politicians like Obama and Pelosi aren't about to cut spending, which leaves only higher taxes.
That's why the fundamental problem here is not that Americans pay too little in taxes, it's that Washington politicians can't stop spending more and more of our money every year. By 2020, according to the Congressional Budget Office, federal spending will equal 90 percent of the country's gross domestic product. So our politicians clearly have no intention of checking into spending rehab. They're counting on getting that euphoria with the VAT fix. If they do, the rest of us will be left with a dead economy."