David Stockman was Reagan’s budget chief. In an op-ed today, he is pretty hard on the Ryan budget. But I post excerpts of the piece because he cites the trade deficit and also calls for a value added tax to substitute for payroll taxes.
CPA is interested in a VAT to neutralize the tariff and subsidy effect of foreign VATs, to make us a more successful trading nation. And of course, our opposition to trade deficits is the reason we exist.
On trade deficits: “The Greenspan-Bernanke campaigns to repress interest rates have crushed savers, mocked thrift and fueled enormous overconsumption and trade deficits.”
On the VAT: “Like his new boss, Mr. Ryan has no serious plan to create jobs. America has some of the highest labor costs in the world, and saddles workers and businesses with $1 trillion per year in job-destroying payroll taxes. We need a national sales tax — a consumption tax, like the dreaded but efficient value-added tax — but Mr. Romney and Mr. Ryan don’t have the gumption to support it.”