Entin warned that without repealing a current tax, a VAT could become a vehicle for more government spending, which occurred in the European Union.
VATs are easier to raise than corporate or individual taxes because they do not require the filing of forms to the IRS. Entin said EU countries have been able to increase their VATs without provoking public outrage because few knew it was being raised.
"Because the VAT is not very visible, it may be too easy to raise," he said. "European VAT's started small, with single digit rates, and now bear rates near or above 20 percent."
House Ways and Means Chairman Sandy Levin (D-Mich.) recently said that the creation of a VAT has not been discussed by his committee. But lobbyists contend the subject will be raised when Congress takes up the issue of tax reform, which could come next year.