Herman Cain penned an Op-Ed called "Don't Be VAT Stupid" in November of 2010. It was picked up by several outlets including The Daily Caller.
Herman lists some reasons why a national sales tax is terrible.
First, we have a spending problem in Washington, D.C., not a revenue problem. The Commission claims their goal is to reduce the deficits by $4 trillion over the next decade. The task force says its plan would save $6 trillion by 2020. It’s sort of like dueling promises that would never happen, because when has a proposed cut in Washington D.C. ever produced the intended savings over 10 years? Never!
Even worse is reason number two: In every country that has established a VAT with the promise of reducing its national debt, the VAT has eventually gone up or expanded on top of the existing tax structure. After discovering many of the tax grenades in the recently passed health care deform bill, which is already driving costs up and access down, it would be real easy for an overzealous bureaucrat to insert the language in the legislation “national retail and wholesale” tax.
For the liberal naysayers who say that would not happen, you lose! Just look at the Social Security system, Medicare and Medicaid. Over the years since their inception, taxes have gone up, benefits have gone down and they are still on a path of insolvency.
A national retail sales tax on top of all the confusing and unfair taxes we have today is insane! it gives the out-of-control bureaucrats and politicians in denial one more tool to lie, deceive, manipulate and destroy this country.