and we have currency manipulation. and trump is quite right on that. and these are the two 21st century barriers to american exports and we re not going to win at this game and balance trade if they go unaddressed. and in fact it is an invitation to these countries. okay we cut tariffs a little bit on one hand but then you raise your v.a.t. on the other hand. they have been gaming this system since the g.a.t. was started in the late 40s. kevin karns, great to have you with us tonight explaining exactly how the united states has its back to the wall when it comes to exports and what we have to do and keep in mind this t.p.a. authority for the next six years. and it will involve the next president. and nothing is going to be able to be done about the vat tax as i see it. not a good issue. still to come the supreme court rules in favor of voters in arizona. this is a big deal when it comes to gerrymandering. stay with us.
238 years. and there s a moral implication here. should you be placing the bills that you have run up on your children? i wouldn t do that with my children. i don t think the country should do it with its children. megyn: so this is why the republicans are saying, we re just not going to raise your credit limit, america s credit limit any higher, until we can get our spending under control and president obama keeps saying we ll he have that conversation, that s a separate conversation, raise the debt limit because we have to pay the bills and republicans say we re going to pay the bills and pay our creditors and may have to shut down government agencies for a time being. but they say you ve never had the conversation, you keep saying you have the spending cuts, but you never do it. and the president consistently refused it consider spending cuts and he will not touch the entitlement programs. megyn: he had the big debt commission. but he ignored it, it was his commission and th
supposed you call it an international sales tax. megyn: you cannot give them the power to take our income taxes and taxes on our consumption because we ll be taxed to the eyeballs. and this hits the middle the vat tax. absolutely. megyn: and everybody buys food. you consume something, you pay a vat tax, that s why the cost of everything in europe is much higher than anything you buy in the united states. it s like a national sales tax and in the current environment where washington desperately needs money, you ve capped how much you can take in income taxes in our fiscal cliff deal. where else do you get the money? a consumption tax? a carbon tax? a value added tax? a gas tax, butat you consume. when you spend your money, you get taxed. that s a big revenue hog. megyn: it s a big number for a lot of americans, stu, thank you. sure. megyn: coming up, new details on a terrifying hour s
and more in the think tank saying this is where we re going to wind up like europe. they have a vat tax. explain what it is and what would mean here. a vat tax, value added tax, like a sales tax, basically. it s a tax on when you spend money, as opposed to when you earn money. that s an income tax. the vat tax is a spending tax. okay? i was in europe when they introduced this thing, okay, and said to us, okay, introduce this consumption tax, this value added tax and maybe we can reduce or get rid of income taxes, didn t work like that. now they wound up wound up with both. in europe you ve got a 20% value added tax, that s added to the costs of all products that you can buy. megyn: you can t have that here. some politicians have suggested it may be a solution, but they said you can t have a vat tax, these are republicans who ran for president i think in 08. can t have it unless you repeal the 16th amendment of the constitution that allows the income tax. i m not sure of the
lottery. i think of martinez where he said there is no right or wrong. there is only what do you and what you don t do. maybe it has come back to haunt him. reporter: that s very good. as lawmakers work to spare every american from potential tax hikes we ll look at who can get hit the hardest. our taxes are about to go up not the tax on our dividends, right? that s a big part of our retirement. it s dividend, too. the rate on our dividends would more than double we depend on our dividends to pay our bills. questions?