OECD Economic Surveys: United States 2010, OECD Publishing, 09/10

In recommending a VAT for the U.S., the OECD report on the U.S. economy emphasizes that the long-term fiscal trends are unsustainable.  The OECD concludes that, while introduction of a VAT will be politically difficult, this consumption tax alternative will be more politically palatable and more economically efficient than an increase in income taxes.