Jeff Poor reported in yesterday’s Business & Media Institute about an interview between CNBC’s Larry Kudlow and Senator Judd Gregg, R-NH. The topic was the massive debt being generated by the Obama administration and a complicit Congress.
Calling the tactics of fiscal irresponsibility a “massive tax trap, that will doom us to subpar, stagnant, slow economic growth and high unemployment,” Kudlow asked Gregg to comment:
“Larry, you’re absolutely right,” Gregg said. “This is a very important point for your viewers to understand. This spending is being done intentionally. The reason the GDP –the spending-to-GDP ratio has gone from 20 percent to 24 percent, it’s heading to 27 percent of GDP is because the present government, the present presidency and the present Congress genuinely believe that you create prosperity by radically growing the size of government and they genuinely believe that our society is fundamentally under-taxed and they want to fill the gap between what has historically been our tax revenues, which have been about 18 to 19 percent of GDP and the spending, which they put in place at 24 percent.”
The end game? According to Gregg, the government is being deliberately run into the ditch in order to implement a European-style VAT/Value-added Tax.
The interview, via EyeBlast.tv:
Thumbnail cartoon by Thomas Nast