THE REFORMATION ROLLS ON:

In the Kingdom of Jordan--arguably Washington's best Arab ally in the war against the terrorist Islamic State organization--historically only about 3 percent of the locals pay taxes.

But this year is different. Facing a burgeoning budget deficit, months ago in an effort to raise revenues the Government levied a 16 percent Value Added Tax or "VAT" on the population. Irrespective of income, citizens of the Kingdom now have to pay tariffs on a broad range of goods and services.

For a plurality of the kingdom's families currently under the poverty line of 500 dinars--or $705--a month, this regressive tax is a having a serious impact. Although the VAT doesn't cover medicines and many food staples like rice, sugar, wheat, bread, chicken, fish, and meat, the new tax is proving a bitter pill to swallow because the costs of gas, oil, diesel fuel, kerosene, and electricity have all increased. Annual vehicle registration fees are up, too. On some cars, fees have spiked from $120 to $268 per year.

Adding insult to injury, the price of Jordan's favorite desert, knafeh--a sweet confection of sugar, cheese, pistachio nuts, and rose water--has swelled from $6.50 to $9 per kilo.

Other vices have also been targeted. For the nearly 45 percent (conservative estimate) of Jordanian men who smoke, the cost of cigarettes has increased about 10 percent. The price of alcohol has also surged. A single domestic tall boy purchased from a store now costs $5.

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