Volcker:Taxes likely to rise eventually to tame deficit

Reuters

 Obama and Volcker are plotting to raise taxes

The United States should consider raising taxes to help bring deficits under control and may need to consider a European-style value-added tax,White House adviser Paul Volcker said on Tuesday.

Volcker,answering a question from the audience at a New York Historical Society event,said the value-added tax "was not as toxic an idea"as it has been in the past and also said a carbon or other energy-related tax may become necessary.

Though he acknowledged that both were still unpopular ideas,he said getting entitlement costs and the U.S. budget deficit under control may require such moves. "If at the end of the day we need to raise taxes,we should raise taxes,"he said.

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