> Notice American tax revenue to GDP is only 27%, which is low compared to many developed nations.<p>Total government tax revenue is about 32% to 33% of GDP.<p>fy2020 Federal: $3.65t; State: $2.1t; Local: $1.4t<p>Out of an economy roughly $22.x trillion in size for fy2020.<p>Those all must be counted as they each provide useful, typically different, government services at various levels and are paid for via taxation.<p>Total government spending is equal to about 37% to 38% of GDP (throw an extra trillion x in spending on the Federal number). This figure in particular is much closer to being aligned with typical OECD developed nations.<p>The deficit spending up at 37-38% comes out of American pockets one way or another regardless of taxation, via future currency debasement, QE infinite.<p>A VAT is a horrific idea and is wildly regressive. The very, very obvious tax change the US needs to make is also very simple: raise taxes on the top ~25%. And particularly raise taxes by a lot on the top 10%. There's absolutely no need to introduce a VAT when the US system is already perfectly well set up to boost taxation by a lot through its existing levers and the US system has immense slack income taxation potential. In most of the US you have to make around $600,000 to $700,000 per year before your total tax rate hits 40%. You can go make $5m, $20m, $60m per year and stay around 45% (higher in CA, NYC, etc). That's obviously going to change in the next 10-15 years.