The VAT Tax - The New Budget Gimmick

Speaker Pelosi continues to mention in interviews that she is open to the imposition to a European style VAT, or Value Added Tax to raise revenue to cover the cost of the Democrats' takeover of healthcare and increased deficit spending. But what is a VAT tax exactly and what would it mean for working Americans? The CATO Institute has a good video that explains how it works:

The GOP Leader blog has more information on the VAT here.

GOP Leader Op-ed in USA TODAY

GOP Leader Boehner: "We learned our lesson"

Republicans offer better solutions and a path to fiscal sanity.

By John Boehner

As I've stated before, Republicans lost our way on fiscal responsibility when we held the majority in Congress. Since then, we have held firm to our commitment to show the American people we learned our lesson by offering better solutions to hold the line on spending, rein in red ink and get the nation's fiscal house in order.

We offered an alternative economic recovery plan that, according to a formula used by one of President Obama's senior economic advisers, would have created twice the jobs at half the cost of the Democrats' trillion dollar "stimulus." We developed a budget that keeps spending under control without raising taxes by instituting a spending freeze for five years, exempting defense and veterans' benefits.

In stark contrast, the Obama administration and the Democrats in Congress have gone on a spending spree the likes of which our nation has never seen.

In fact, the federal government ran up a budget deficit of $1.4 trillion during the past fiscal year, more than triple the size of the previous record high. This level of reckless spending is unfathomable to out-of-work families struggling to make ends meet, but it has become the status quo for out-of-touch Washington Democrats.

What's worse, this spending binge hasn't produced the jobs this administration promised. The "stimulus" has failed to keep unemployment from rising to near 10%, and roughly 3 million private sector jobs have been lost since it became law. Families are rightfully asking: "Where are the jobs?"

Now, even while operating on a budget that doubles the debt in five years and triples it in 10, Democrats are proposing a new round of spending — and borrowing — to make up for the "stimulus" that isn't working. This is on top of a trillion dollar government takeover of health care, a cap-and-trade national energy tax and other costly initiatives passed this year.

By continuing to spend money we don't have, Democrats are making matters worse for our economy, not better. It's time to start working together to ensure the American people have a government that lives within its means.

Rep. John Boehner, R-Ohio, is the House minority leader.

Morning Must Reads

Denver Post: Health care bill would lead to 'system collapse"

Wall Street Journal: Health costs and history

Wall Street Journal: Public option gets new life in Senate

The Hill: Reid offers doctors a deal

Politico: Dems look to debt for "debt fix"

Washington Post: Shell wins approval to drill in Alaska

Heathcare news update

From the Republican Whip's Daily Update:

Speaker Pelosi Declares The Moment Of Truth For The Public Option. Speaker Nancy Pelosi (D-Calif.) on Thursday told fellow Democrats the time has come for all members of the party to say where they stand on the government-run health insurance program. Pelosi informed her caucus that she will be asking which of the various public options members can support, or if they cannot support any at all. The Hill

However, Members And Leadership Aides Admit The Public Option Still Lacks The Necessary Votes In The House. Liberals and even some leadership aides suggest the speaker has about 200 votes for a public option tethered to Medicare — not the 218 she needs … “This is becoming a false choice,” said Utah Rep. Jim Matheson, an influential Democrat in the conservative Blue Dog Coalition. “I find it interesting how the discussion seems to be dominated by the public option, but I think there are other top-line issues that will be more important for how some members vote.” Politico

Senate Bill To Shield Doctors Would Add $240 Billion To Deficit. “It’s not fiscally responsible,” Mr. Bayh said. “I could not vote for a bill that raises the deficit by $240 billion, not at a time when we are already hemorrhaging red ink. The physicians’ issue needs to be addressed, but not in a way that increases the deficit.”Mr. Conrad, who is chairman of the Budget Committee, was furious at the possibility that Congress might adjust payment rates for doctors without offsetting the cost. “I don’t agree with just adding that amount to the debt,” Mr. Conrad said, adding, “I won’t vote for it.” The New York Times

Congressional Budget Office Says Cap and Trade Would Slow U.S. Economy

An article in the Washington Post today reports CBO Director Douglas W. Elmendorf “testified before the Senate Energy and Natural Resources Committee that the cap-and-trade provisions of the House bill -- in which emitters of greenhouse gases would be able to buy and sell pollution credits -- would cut the nation's gross domestic product by 0.25 to 0.75 percent in 2020 compared with ‘what it would otherwise have been,’ and by 1 to 3.5 percent in 2050.”

Shuster-Holden Resolution Honoring Troops from the PA Guard and the 56th Stryker Passed by the House

Today, the House of Representatives overwhelmingly passed H.Res.754, a resolution introduced by Congressman Shuster and Congressman Tim Holden honoring the citizen soldiers of the Pennsylvania National Guard including the troops of the 56th Stryker who recently returned from Iraq.

“It is an honor to speak in favor of this resolution on the House floor and to have the support of the entire Pennsylvania Congressional Delegation,” Shuster said during debate on the resolution. “The men and women being honored today are not only brave soldiers; they are also our neighbors, friends, and relatives. Their mission in Iraq was vital to our national security and they served with honor and distinction.”

In November of last year, Shuster was joined by his Pennsylvania Congressional colleagues Rep. Tim Holden, Rep. Jim Gerlach, and Rep. Charlie Dent on a trip to visit the members of the 56th Stryker Brigade Combat Team while they were training at Camp Shelby, Mississippi and Fort Polk, Louisiana in preparation for their deployment to Iraq.

In June of this year, Shuster, along with Reps. Holden, Dent and Rep. Kathleen Dahlkemper, visited Iraq to meet with our deployed troops from Pennsylvania to personally thank them for their service. The Congressional Delegation met with the troops at Camp Liberty, outside of Baghdad, and in Taji. While in Iraq, the delegation also met with General Ray Odierno, commander of multinational forces in Iraq who spoke glowingly of the job being done by the Pennsylvania Guard to bring security to Iraq.

Video of Congressman Shuster Rolling-Out the NS99 Electric Locomotive

On September 28th, Today, Congressman Shuster joined Transportation Secretary Ray LaHood in unveiling a revolutionary new electric locomotive at the Norfolk Southern Juniata works in Altoona. The new engine, developed by Penn State and Norfolk Southern, with funding from Congress and the private sector, will help usher in a new generation of clean and green rail transportation.