That isn't a "misconception", at least not wrt the US. As others have pointed out, a VAT is being suggested by some people as a way for the government to raise

That isn't a "misconception", at least not wrt the US. As others have pointed out, a VAT is being suggested by some people as a way for the government to raise additional revenue. A typical argument (this from a libertarian-oriented economist) might be something like: http://www.marginalrevolution.com/marginalrevolution/2010/02/is-there-a-case-for-a-vat.html http://www.marginalrevolution.com/marginalrevolution/2010/02...