Sessions, Samuel Y., M.D., JD, and Philip R. Lee, MD, “Using Tax Reform to Drive Health Care Reform, JAMA, 10/22,29/08

“The 60% of US health care costs financed by taxes equals 10% of US gross national product or more than one-third of federal and state tax revenues.  That is, de facto US tax and health policy already devotes more than one-third of all US taxes to health care….
…Tax increases from the VAT would be offset by significant, and potentially dramatic, cuts in other taxes.  For example, more than 80% of federal income taxes are paid by the top 20% of income earners.  Substituting VAT revenues for income taxes now used to pay for health care would make it possible both to remove many US households from the income tax entirely and to institute significantly lower tax rates for the remainder.”
http://jama.ama-assn.org/cgi/content/extract/300/16/1929?