“VAT Is Not Under Consideration”

That’s the message put out Monday by White House Press Secretary Robert Gibbs and by House Ways and Means Chair Sander Levin.

Here’s what Gibbs told reporters:

Q All right, let me ask you about the value-added tax. Is there anything that this administration is doing to consider, calculate, pose in any way, shape or form, weigh or measure potential deficit implications or economic implications of a value-added tax?

MR. GIBBS: No, this is not something the President has proposed nor is it under consideration.

Q At any level of this White House at all?

MR. GIBBS: I’d point you to —

Q You said there were hundreds of memos being written all throughout the government at any given time. Couldn’t one of them be written — get written —

MR. GIBBS: As I said, the President has not proposed this idea nor is it under consideration.

Here’s what Levin told the National Press Club:

MODERATOR: We’ve had several questions relating to the value added tax, which is a proposal that’s been discussed on Capitol Hill. Could you please discuss the pros and cons of a value added tax? And would such a tax violate President Obama’s promise not to impose taxes on people making less than $250,000?

LEVIN: You know, I’ve been listening to this debate. I saw, waiting for the Red Wings hockey game yesterday — I shouldn’t have waited — but I listened to the talk shows, and it was interesting how the value added tax had gained such prominence. I was somewhat surprised.

I’ve heard almost nobody within our ranks discuss it. I — I know that one distinguished economist in this town did talk about it, but the administration hasn’t. So I was somewhat surprised. My guess is that by next week it will be a goner, and that’s for good reason.

I think it’s being raised mostly by the Republicans for political gain. They are trying to label us as a taxer. I suggest not only are they wrong, but they should read Paul Ryan’s proposal. He’s a Republican — my pal Paul — and he has a value added tax provision in it. So I don’t think it’s on the agenda. And so let me suggest that we argue the pros and cons the next time I can come to the Press Club. Thank you.