Re: U.S. Distribution of Wealth Now Worse Than Banana RepublicsNov 15th, 2010
Economist and New York Times columnist Paul Krugman says the only way the U.S. will get its debt crisis under control is by the use of "death panels" and a national sales tax.
The national sales tax, referred to as VAT (value-added tax) and widely used by governments across Europe, will help cut the U.S deficit, Krugman argues.
Krugman made his comments on ABC's “This Week with Christiane Amanpour” (external - login to view) during a roundtable discussion about the economy and the recent findings of the U.S. Debt Reduction Commission.
Here's the key excerpt:
"Some years down the pike, we're going to get the real solution, which is going to be a combination of death panels and sales taxes. It's going to be that we're actually going to take Medicare under control, and we're going to have to get some additional revenue, probably from a VAT. But it's not going to happen now."
Krugman: Death Panels, VAT Will Fix Debt Crisis (external - login to view)