Obama not weighing value-added tax, spokesman says

Source: Reuters

WASHINGTON (Reuters) – The White House on Monday played down speculation that a value-added tax was under consideration by President Barack Obama as a way of reducing surging U.S. budget deficits.

"This is not something the president has proposed, nor is it under consideration," White House spokesman Robert Gibbs said.

Former Federal Reserve Chairman Paul Volcker, an outside adviser to Obama, said earlier this month that the United States should consider introducing a European-style VAT tax and perhaps an energy or carbon tax. There is speculation that the fiscal commission Obama named this year could suggest the introduction of a VAT as one option to bring down the deficit.

Read more: http://news.yahoo.com/s/nm/20100419/pl_nm/us_obama_economy_tax

Only a concession like universal socialized health insurance, that would result in a net progressive effect, would warrant it. In the meantime, I hear the rich have plenty of wealth they can chip in.

I'm not sure how it plays out in day-to-day real world, but I know many EU countries partially fund government operations / programs from the proceeds.

It is a classic strawman that Republicans set up so they can knock down.