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Isn't VAT used to pay for things the goverment funds like social services and the police. That's what a lot of taxes are used for. Please correct me if i'm wrong

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I kept the original answer which is a question used to answer another question.

A VAT generally stands for a "Value added tax". As with all taxes, the monies raised are for pay down a current deficit or to raise funds for Government operating expenses or to undertake a new venture such as placing a man on Mars.

The VAT is usually a national sales tax. Currently in parts of Europe for example it is a common method to raise funds.

In the United States, so-called US State sales taxes are likened to a national sales tax, of which the Federal Government is reluctant to add upon already high sales taxes. Although I believe the Federal Government & individual states all tax gasoline purchases.

Most of the time, however, the VAT is discussed as a means to not raise Federal income taxes. The political climate for a VAT in the USA is a negative.

The Federal Government is more likely to use "luxury" taxes or create a more progressive federal income tax OR yet still close some of the many Federal income tax loopholes.

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