"The U.S. is the only rich country in the world without a national sales tax or value-added tax (VAT). Germany has one at 19%, Britain at 20% and Korea at 10%. What’s the appeal of a consumption tax? First, it is efficient. Most studies, including the IRS’s, suggest that the federal government loses several hundred billion dollars a year to tax fraud. This is tougher to pull off with a consumption …tax. Second, it provides the government with a more stable source of revenue than income taxes, which fluctuate greatly between boom and bust years. Third, Americans consume too much, often using credit and leverage to do so. A consumption tax would moderate this behavior. Government will always get less of behaviors it taxes and more of what it subsidizes."
— Fareed Zakaria