By DAN KRISTIE, Staff Writer

U.S. Rep. Joe Pitts is leading Republican opposition to a value added tax.

Pitts, R-16th, of East Marlborough, sent a May 20 letter to the chairmen of the National Commission on Fiscal Responsibility and Reform expressing opposition to the imposition of a national value added tax, or VAT.

As its name implies, the levy would tax the value added to a product during each stage of its production. It is common in Europe and other parts of the world but not in the United States.

Tax policy advisers in Washington have recently floated the idea of instituting a VAT to help reduce the national debt and cover the cost of Social Security and Medicare. They have also suggested that a VAT could pay for the spending called for in the health care bill and could lower the income tax burden on many Americans.

While lawmakers have expressed some interest in a VAT, there are no major proposals to institute one. Many lawmakers are critical of a VAT, saying it could hurt industry and drive up the cost of almost everything, disproportionately hurting the poor.

Republicans have come out against a VAT and want to make their opposition a part of their message going into the November elections.

Pitts' letter opposing a VAT was signed by 154 House Republicans. Pitts said he wrote the letter because he believes the VAT will hurt the economy and will end up being imposed in addition to — rather than instead of — other taxes.

"I think we really need to tell the debt commission right away that we need to look at spending cuts, not a VAT; that's a job killer in Europe," Pitts said.

The National Commission on Fiscal Responsibility and Reform, also known as the Debt Commission, was formed earlier this year at President Obama's direction.

To contact staff writer Dan Kristie, send an e-mail to dkristie@dailylocal.com.