Adding a Value Added Tax, or VAT, on top of the US’ current tax structure would damage retail spending and costs hundreds of thousands of jobs, the National Retail Federation says.
The Washington Post reports the NRF studied such a proposal and the possible effect a 10.3 percent VAT would have on business. NRF president Matthew Shay said his group’s research is intended to push back against what he views as a rising tide of interest in the VAT in Washington, where policymakers are eager to reduce record budget deficits. “Supporters claim a VAT is the solution to the nation’s economic ills, but nothing could be further from the truth,” Shay said in a statement. “This report has found that a VAT would have negative economic consequences for most working Americans alive today.”