VAT is the most toxic tax there is. Taxation at every step of production is not only abusive, but in the end it will spur even more purchasing of foreign made products.
Obama doesn’t even have the class to end this nation quick. He wants it to suffer a slow ugly painful death.
I think I remember that Europe does not tax exports, only domestically sold and produced items. This lowers consumption and would not hurt the export industry. But like you say, what about imports? Good question.
In any case democrats are not seriously considering this VAT now. Their plan is to wait till crushing debt kills economy for public opinion to change. Meanwhile Obama will go into 2012 saying he tried to fix deficits but republicans opposed a plan to fix it (the debt commission) . That is my guess anyhow.