VAT on the Horizon?

According to Reuters, White House adviser Paul Volcker acknowledged on Tuesday that a Value Added Tax (or, VAT; basically, a national sales tax) may be in the works for the US in order to pay off the deficit.

"If at the end of the day we need to raise taxes, we should raise taxes.", Volcker is quoted as saying.

So, in other words, "We've gone on a huge shopping spree on your dime, so get ready to pay for it."

I guarantee you, the idea of a VAT is toxic. This will be a huge fight if the administration proposes it.