Back in 2005, NTU warned Congress about adopting a VAT:
A VAT would lead to the type of over-inflated government we have seen in Europe, where VATs are common. Such a tax destroys jobs and economic growth, yet a VAT would not lead to long term tax simplification because it lacks the transparency of other tax reform proposals (including a flat tax or the FairTax). In addition, a VAT would be easily filled over time with special exemptions and hidden tax breaks by well-connected industry lobbyists.
As Jordan noted recently, the VAT is still hanging around. And despite a recent Senate vote opposing a VAT, opposition to the tax seems to have fallen on some deaf ears as a VAT remains on the table.
Stay tuned to VAT watch for more info.