Economist, “A Last Resort,” 11/19/09

“Selling a VAT is politically tricky. Australia, Canada and New Zealand, all recent VAT-adopters, replaced an existing federal consumption tax. Americans would be asked to pay a brand-new tax. The solution might be to charge a high enough VAT to exempt most Americans from income tax. That way, Mr Obama could claim he had kept his promise not to raise taxes on any household earning less than $250,000.”