In my article today on value-added taxes, I noted that it’s far from a novel idea. Some version of a VAT (sometimes called a “goods and services tax,” or G.S.T.) is in use in nearly 150 other countries, in developed and developing economies alike. Malaysia is probably the most recent addition to the club, having announced a few weeks ago that it will levy a VAT in 2011.
Here’s a map, from my colleague Kevin Quealy, that shows which countries had VATs as of 2008, according to the Organization for Economic Cooperation and Development:
Even though the United States is one of the few countries without a VAT, such taxes have a long history of (mottled) support here.