With budget deficits soaring and President Obama pushing a
trillion-dollar-plus expansion of health coverage, some Washington
policymakers are taking a fresh look at a money-making idea long
considered politically taboo: a national sales tax
Common around the world, including in Europe, such a tax -- called a
value-added tax, or VAT -- has not been seriously considered in the
United States. But advocates say few other options can generate the
kind of money the nation will need to avert fiscal calamity
At a White House conference earlier this year on the government's
budget problems, a roomful of tax experts pleaded with Treasury
Secretary Timothy F. Geithner to consider a VAT. A recent flurry of
books and papers on the subject is attracting genuine, if furtive,
interest in Congress. And last month, after wrestling with the White
House over the massive deficits projected under Obama's policies, the
chairman of the Senate Budget Committee declared that a VAT should be
part of the debate