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Tuesday
Dec272011

Gingrich Takes Aim at Romney's Value-Added Tax Proposal

Peter Foley/Bloomberg via Getty Images(ATLANTA) -- Recent comments by Mitt Romney in which he contemplates a Value-Added Tax and Co-Insurance are becoming fodder for his rival presidential candidate Newt Gingrich’s campaign, which has taken to calling Romney a “Massachusetts moderate” and now says Romney has looked at "European Socialist ideas."

Gingrich campaign spokesman R.C. Hammond said that the Romney ruminations were part and parcel of the case Gingrich will be making to voters this week: he represents conservative values, while Romney is a “Massachusetts moderate.”

“The fact that he’s willing to look at European Socialism shows just how far out of the conservative mainstream he is,” Hammond said.

In a December 24 story in The Wall Street Journal, Romney is described not favoring the idea of “layering a VAT onto the current income tax system. But he adds that, philosophically speaking, a VAT might work as a replacement for some part of the tax code, ‘particularly at the corporate level,’ as Paul Ryan proposed several years ago. What he doesn’t do is rule a VAT out.”

A value-added tax, or VAT, is a form of the consumption tax in which the tax is levied based on a product’s price, not including the cost of materials; it originated in and is popular in Europe, imposed by the European Commission and the governments of France and the United Kingdom, among others.

Copyright 2011 ABC News Radio







ABC News Radio