White House Economic Economic Advisor Paul Volcker stirred up debate over the United States possibly adopting a European-style value added tax to help bring federal deficits under control, saying recently that it “was not as toxic an idea” as it has been in the past.USA-FED/

Well the idea is still pretty toxic in the U.S. Senate.

The Senate on Thursday voted 85-13 to adopt an anti-value-added tax resolution sponsored by Arizona Republican John McCain as part of its consideration of legislation that would restore lapsed jobless benefits.

The resolution has no force of law, but it gives a pretty clear sense that senators don’t like the idea of a value-added  tax.

“It is the sense of the Senate that the value added tax is a massive tax increase that will cripple families on fixed income and only further push back America’s economic recovery,” the resolution stated.

A value-added tax would be added at each stage of production and as such would not be directly seen by the consumer the same way a sales tax is added to the total at the register.  But it would be felt by consumers through higher priced goods and services. Critics say it is a regressive tax that hits hit fixed-income and poor people particularly hard.