MI SR0145

Memorializes the U.S. Congress and President to oppose implementation of a value added tax (VAT) as proposed by Paul Volcker, chairman of President Obama's Economic Recovery Advisory Board

Contends that a VAT would be a regressive tax system that distorts the economy, increases bureaucratic overhead, and reduces international competitiveness and exports

Argues that while the federal government must address its escalating debt burden, a VAT is an inappropriate solution that hides tax costs from taxpayers and does not guarantee debt reduction

Expresses concern that a VAT, common in Europe but new to the American economy, would cripple innovation and economic growth despite being an effective revenue generator

Directs transmission of the resolution to the President, Congressional leadership, and Michigan's congressional delegation