Letter To The Honorable Barack H. Obama, President Of The United States Of America

Press Release

Lance Takes Lead In Urging President Obama To Reject European-style Value-added Tax

Congressman Leonard Lance (N-07) is leading an effort in Congress calling on President Obama to reject a European-style value-added tax that was recently supported this week by senior White House economic adviser Paul Volcker.

In a response to press reports that Volcker suggested instituting a European-style value-added tax in order to bring federal deficits under control, Lance spearheaded a letter to President Obama strenuously opposing such an approach.

"We share Mr. Volcker's concerns with the size of the federal deficit and strongly support returning our nation to a path of fiscal responsibility," Lance's letter said. "However, raising taxes will only result in additional hardships for America's families. This tax-and-spend economic policy is the wrong medicine for our ailing economy and will do little to get our deficits under control over the long-term."

Lance noted that it was also troubling that these comments came on the heels of recent tax increases that were included in the new health care law as well as expected action on the President's budget which would eliminate many of the 2001 and 2003 tax cuts and raise taxes on millions of Americans.

"We respectfully call on you to publicly reject a European-style value-added tax and pledge to work with Congress to reduce federal spending and put our Nation on a glide path toward real debt reduction without increasing taxes," Lance wrote in his letter to President Obama.

The Honorable Barack H. Obama
President of the United States
The White House
1600 Pennsylvania Avenue, N.W.
Washington, DC 20510

Dear Mr. President:

We are writing to express our strong opposition to recent statement made by White House senior economic advisor Paul Volcker suggesting the United States should consider raising taxes to help bring deficits under control. Specifically, Mr. Volcker said the U.S. should consider imposing a "value-added tax" similar to those charged in Europe.

We are all concerned about ways to reduce the size of the federal deficit and strongly support returning out nation to a path of fiscal responsibility. However, raising taxes will only result in additional hardship for America's families and workers.

Mr. Volcker's comments come on the heels of recent tax increases included in the new health care law as well as expected action on your budget which could eliminate many of the 2001 and 2003 tax cuts and raise taxes on millions of Americans. These tax increases come at a time when federal spending has increased to nearly one-quarter of our economy. This tax-and-spend economic policy is the wrong medicine for our ailing economy and will do little to get out deficits under control over the long-term.

We respectfully call on you to publicly reject a European-style value-added tax and pledge to work with Congress to reduce federal spending and put our Nation on a glide path toward real debt reduction without increasing taxes.

Sincerely,

Leonard Lance
Member of Congress

Wally Herger
Member of Congress

Virginia Foxx
Member of Congress

Peter Hoekstra
Member of Congress

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