"...Michael Linden, associate director of tax and budget policy at the Center for American Progress. 'Having a VAT replace income tax entirely is a terrible idea,' he said. 'If VAT becomes a solution it will have to be part of a larger tax system, ideally part of a larger tax reform effort.'”
"Since VAT is a tax on consumption rather than income or investments, it’s considered a regressive tax. Poor people, who tend to spend a higher percentage of their income than wealthier ones, are disproportionately affected by consumption-based taxes. In the U.S., regressive sales taxes are balanced out by a progressive income tax structure."
"Left-leaning think tanks such as the Center for American Progress express concern that adding a VAT to the country’s existing tax code or using it to replace the majority of the income tax, as Michael Graetz, Columbia University School of Law professor ... proposed to the Senate Finance Committee in 2008, would tip the balance in favor of the rich and drop a staggering weight on an already-struggling demographic."
With VAT Tax on the Table, Progressives Sound Alarm The Washington Independent
It seems to me that replacing the income tax with a VAT is even worse for the lower-income bracket then just adding the VAT. The lower-income people will pay the same flat tax in a VAT, but that flat tax will be a bigger percentage of their income compared to the upper class.
No matter how it is looked at, VAT is a bigger burden on lower-income people, whether it is replacing the income tax or not.