The VAT would be great news for the political insiders and beltway elite. A brand new source of revenue would mean more money for them to spend and a new set of loopholes to swap for campaign cash and lobbying fees But as I explain in this new video from the Center for Freedom and Prosperity, the evidence from Europe unambiguously suggests that a VAT will dramatically increase the burden of government. That’s good for Washington, but bad for America.

It’s worth noting that even if the politicians are unsuccessful in their campaign to take over the health care system, there will be a VAT fight at some point in the next few years. This will be a Armageddon moment for proponents of limited government. Defeating a VAT is not a sufficient condition for controlling the size of government, but it surely is a necessarry condition.

Some of you may wonder whether a VAT is acceptable as a total replacement for the current income tax. In another video, comparing the flat tax and national sales tax, I explain that a low-rate, consumption-base system would be great. But I don’t want that kind of tax in addition to the current internal revenue code. And that is exactly what Obama, Reid, Pelosi, et al, have in mind.