Economist, “Stemming the Tide,” 11/19/09

“An analysis for The Economist by the Tax Policy Centre estimates that a 5% VAT that exempted education, housing, and religious and charitable services would raise a net $324 billion in 2014 and $411 billion in 2019. Some of that could be used to reduce the impact on the poor, for example by expanding Mr Obama’s payroll-tax credit. The rest could be used to lower corporate and personal rates and reduce the deficit.”
http://www.economist.com/node/14903024