Projected U.S. budget deficits have prompted a discussion about alternative federal revenue sources. A national consumption tax in the form of a value-added tax, or VAT, is one such option.

The United States is the only major industrialized country in the world without a VAT. Prominent economists and fiscal policy professionals have begun the debate over whether such a tax should be enacted.

To shed some light on these issues, the Tax Governance Institute (TGI) conducted a survey during their Webcast entitled "Will the U.S. Adopt a Value-added tax, or VAT?" The survey report focuses on how U.S. companies are responding to the VAT debate. Survey responses cover the potential timing of U.S. VAT adoption, what a potential value-added tax may look like, and what preparatory steps the survey respondents would take if the U.S. introduced a VAT.