Budget shortfalls force consideration of a VAT, accounting firm finds

The study comes on the heels of former Fed Chairman Paul Volcker saying new taxes such as a VAT or carbon tax might be needed because changes to the current tax system won't solve the country's debt problem.

A number of high-growth markets, like China and India, are looking at the VAT to generate needed revenue, KMPG found. The EU, which already has a VAT, is looking to enhance the tax to raise more revenue and fund other policy objectives, the study stated.