Border Tax Equity Act wouldn't impose VAT, supporters say

An aide to Rep. Walter Jones (R-N.C.), a co-sponsor of Pascrell's bill, said backing the legislation shouldn't be confused with backing a VAT, which has been derided by Republicans as gateway to bigger government. The Republican National Committee has pounced on statements by White House adviser Paul Volcker suggesting that a VAT or other new taxes might be needed to cut huge deficits.

When Republicans such as Sen. George Voinovich (Ohio) and Rep. Duncan Hunter (Calif.) have suggested that policy makers look at a VAT or similar consumption taxes, they have said it should be used in place of the income tax and not in addition to it.