He is going to have a hard time with the VAT, his latest stimulus bill didn't get far and so far at the G20 dog and pony show, he has yet to impress anyone, especially the people of the US. People may be fooled about some things but a VAT will hit the poor and lower middle class hard and it will be a backlash against his party because they know it. They already know that tax increases are going to hurt us and like health care, it will have to be a strong armed conflict within the party and within congress to get it passed with any certainty.
We are already going to face BIG tax increases come January one 2011. With the return of the Clinton tax tiers and new taxes with health care, there is a prediction that the first quarter will be fine but the second will be hell on the country. What we experienced in 2009 should prepare us for what happens in 2011.
If we do slip into a depression, then we may end up seeing a Jimmy Carter with a hostile congress which is what we need.