John Podesta compared the nation\u2019s current budget crisis to the situation former President Bill Clinton faced in 1993 and said some form of a value-added tax is \u201cmore plausible today than it ever has been.\u201d\u009d<\/p>\n
\u201cThere\u2019s going to have to be revenue in this budget,\u201d\u009d said Podesta, Clinton\u2019s former chief of staff and co-chairman of President Barack Obama\u2019s transition team, said in an interview on Bloomberg Television\u2019s \u201cPolitical Capital with Al Hunt,\u201d\u009d airing today.<\/p>\n
A so-called consumption tax would \u201ccreate a balance\u201d\u009d with European and Japanese economies and \u201ccould potentially have a substantial effect on competitiveness,\u201d\u009d said Podesta. Value- added taxes in Europe and Japan encourage savings by taxing consumption.<\/p>\n
Podesta said such a tax may be regressive, but can be balanced by exempting some products and using \u201cthe money to support low-wage workers.\u201d\u009d<\/p>\n