Krugman: Death Panels, Value-Added-Tax Will Fix Debt CrisisSubmitted by SteveMT on Sun, 11/14/2010 - 20:37
Unfortunately, he may be correct.
Krugman: Death Panels, VAT Will Fix Debt Crisis
Sunday, 14 Nov 2010 05:31 PM
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.
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."
Apparently realizing his comments were inflammatory, Krugman took to his blog Sunday afternoon to immediately “clarify” his comments.
“I said something deliberately provocative on This Week, so I think I’d better clarify what I meant, which I did on the show, but it can’t hurt to say it again,” he wrote. “So, what I said is that the eventual resolution of the deficit problem both will and should rely on “death panels and sales taxes”.
“What I meant is that:
"(a) health care costs will have to be controlled, which will surely require having Medicare and Medicaid decide what they’re willing to pay for — not really death panels, of course, but consideration of medical effectiveness and, at some point, how much we’re willing to spend for extreme care
"(b) we’ll need more revenue — several percent of GDP — which might most plausibly come from a value-added tax