Question:  What are the chances of a VAT being enacted?


Answer:  It's possible, but not probable in my view.  Almost half of all those who report income to the IRS will be paying no income tax, so there is a large voting block to increase taxes on higher income people.  However, 100% of the people would be paying the VAT, so it wouldn't be politically acceptable.  Nevertheless, everyone will feel the effects of higher state taxes, and the costs of higher taxes on corporations and high income people will be reflected in higher prices of the products you buy.