Greenstein, Robert and Peter Orszag, “A Broken Federal Fiscal Policy…and How to Fix It,” in “What We Stand For, A Program for Progressive Patriotism, Mark Green, Editor, The New Democracy Project, New York, NY 2004

“(To raise revenues) another possibility is to introduce a value-added tax [VAT] in the United States to help reduce long-term budget deficits.  Most developed nations and all members of the European Union impose a VAT.  A broad-based VAT [one that excludes only small businesses, education, religion, and health cafe) would generate revenue equal to about one-half of 1 percent of GDP for each 1 percentage point of the tax.  By itself, a VAT would be regressive, so it would need to be accompanied by other tax-code changes to maintain the overall progressivity of the code,” p.84