The Value Added Tax - A New Hidden Tax?

America’s economy is a mess. United States President Barack Obama’s budget would:

• Permanently expand the size of federal government spending by 3 percent of gross domestic product over 2007 levels;

• Double the national debt to over US$18 trillion;

• Borrow 42 cents for each dollar spent in 2010; and

• Place an additional debt of US$74,000 per household. This money will never be repaid in the current generation. The debt will be passed on the succeeding generations to pay.

Even though the U.S. federal government’s tax revenue has more than tripled since 1965, the budget deficit will top $1.6 trillion in 2010. This spending hike would push spending to $36,000 per household by 2020. Obviously, something has to be done to reverse this trend. President Obama has shown that he is more interested in raising taxes than cutting spending. In his own words, “I do think at a certain point you’ve made enough money.” The implication is that an individual is only entitled to so much money; governments (and thus other people) are entitled to the rest.

To finance this continued increase in spending, the federal government is going to have to bring in new sources of revenue. Unfortunately the “revenue well” is almost dry. The total per capita tax burden born by Americans is rising to the high-est level in history. The total taxes paid by an average American household will exceed US$16,000 in 2010. Corporate tax rates are at 35%, compared to 24% for the other OECD countries.

No matter how it would be implemented, the Value Added Tax is a form of servitude. Although some taxation is necessary, all taxation diminishes freedom. Money is a tangible form of time. We trade our time and labor for money. Government, in the form of taxation, takes away some of our freedom because we are forced to give an increasing portion of our time to the government and getting less and less in return.

The Scriptures command us to submit to governing authorities. Jesus Himself said, “Give back to Caesar the things that are Caesar’s”. This means Christians must be good citizens, pay taxes, obey laws, and serve (as called) in government. Augustine argued that Christians are to be the best citizens: what others do only because the law demands, we do out of love for God. In these times, more than ever, we need to heed the words of the Holy Spirit as written by Paul to Timothy to pray for our leaders in government, that they govern wisely and with Christian charity.

Truly, today would be "a good day to fly."