America’s VAT Tax Is Coming and Washington Will Use It to Squeeze You Dry

Here Comes the Tax They Have Been Planning All Along

Let me tell you what is actually happening in Washington right now. The stories are multiplying. Congress is finally getting serious about the debt. They want to fix Social Security. And somewhere in the back rooms, someone is putting together the pitch for a Value Added Tax on the American consumer.

Do not be fooled by the packaging. This is not a solution. This is a revenue grab dressed up as statesmanship.

What a VAT Actually Does to You

A Value Added Tax is levied at every single stage of production. By the time a product reaches your hands, the tax has already been embedded multiple times. You pay it without seeing it. Without voting on it. Without understanding exactly how much it costs you.

And here is the progression you should expect, because I have watched how government operates my entire career:

• They announce a 5% VAT and promise it will generate $3.4 trillion over 10 years
• The rate quietly becomes 7.5%, then 10%
• At 18%, we are talking $12.2 trillion over 10 years
• In France, Britain, and Germany, VAT already accounts for 15 to 20% of total government revenue
• And not one of those countries has eliminated their income tax in exchange

That last point is everything. I actually supported a consumption tax once. It was called the Fair Tax, and the deal was simple: replace the income tax entirely. Clean the slate. Burn down the corrupt, lobbyist-infested tax code that Washington uses to reward its friends and punish everyone else.

Why They Will Never Get Rid of the Income Tax

Here is the dirty secret. All political power in Washington flows from the tax code and the federal registry. That is where the carve-outs live. That is where regulatory capture happens. That is how politicians print money for themselves and their donors without ever touching a printing press.

Eliminate the income tax and you eliminate the machine. They will never do it. So what you are going to get instead is a VAT bolted directly on top of every other tax you already pay. An add-on. Not a reform. Not a replacement. An additional extraction.

My Non-Negotiable Conditions

I am going to say what I said on air and I mean every word of it. You want to raise my taxes? Fine. Go ahead. Raise them. But you do not get a single dime from me in new taxes without meeting these conditions:

• A balanced budget amendment, with teeth, no escape hatches
• Every dollar collected from a VAT goes toward paying down the national debt, not a new program, not a slush fund, not a transfer payment
• Spending gets cut alongside any new revenue, not after, not eventually, now

Because here is the payoff that nobody in Washington wants to talk about. If America actually demonstrated fiscal seriousness, our borrowing costs would collapse. We could be borrowing at rates lower than Switzerland. That is not a talking point. That is basic credit math. A borrower who shows discipline gets cheaper financing. Period.

What This Means for Your Money

Regardless of whether they have the political courage to attach real conditions to this tax, you need to be preparing now:

• Purchasing power declines in a VAT environment. Your dollar buys less at every transaction.
• Retirement income built on fixed assumptions becomes dangerously underfunded
• Consumer spending slows, which ripples through corporate earnings and equity valuations
• Tax-efficient financial planning becomes more critical than ever when consumption itself is taxed

They will call it a deficit fix. They will give it a friendly name. They will promise rebates for lower-income households so it sounds fair. And then they will use the revenue to fund whatever they were going to fund anyway, while the debt keeps growing.

I have seen this movie before. I know how it ends.