Value-Added Tax Calculator
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Higher revenues, reduced spending, or a combination of the two is a must for the federal government to avoid insolvency at some point in the not-so-distant future. One solution on the revenues side that has been discussed is the possibility of the U.S. enacting a Value Added Tax, or VAT, which is a form of consumption tax common in most other industrialized countries.

Using the left-hand column below, this VAT calculator allows individual households to estimate how much they would pay in additional taxes if a VAT was enacted in the United States. Furthermore, the right-hand column below allows users to be specific as to the size of the VAT and/or what items are included in the VAT base.

Personal Finance Questions
 
Individuals in Household
(including head):
Age of Head:
Income
Individual Earnings Income:
(wages and salaries)
$
Employer Pension Contributions:
$
Business Income:
(Small Business, S-Corp, Rental or Royalty Income)
$
Retirement Income:
(pensions, 401k, IRA distributions)
$
Investment Income:
(dividends, capital gains, interest)
$
Transfer Income:
(Social Security, SSI, TANF, etc.)
$
Does your employer provide health insurance? Yes     No
Wealth
Retirement Portfolio: $
Home Equity: $
Value of Other Assets: $
Update Results Automatically
Policy Parameters
  (optional)
Time Period:
    2011 to 2020 (ten year period )
    Pick a year:

VAT Amount:
    VAT necessary to eliminate deficit
    VAT necessary to reduce deficit
          to % of GDP
    Enter a VAT rate: %
    Enter necessary annual revenue:
        $ billion (ten-year average)
Tax Base:
    Fixed percentage of GDP: %
    Include consumption of:
Food Services:
Alcohol and Tobacco:
Accommodations :
Recreation:
Durable Goods:
Household Supplies:
Personal Care Products:
Clothes:
Gas:
Transportation:
Insurance:
Communication:
Utilities:
Personal Care, Clothing,
  or Maintenance Services:
Groceries:
Medicine:
Health Care:
Housing:
Other Services:
Financial Services:
Education and Religion:
Note: an indicator next to a category indicates that this category is only being partially taxed.

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Calculator by Nicholas A. Kasprak and Gerald T. Prante