AEIdeas

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Discussion: (6 comments)

  1. If the experience of other countries teaches us anything, it’s that a VAT proposal is not going to provide complete replacement – but it’s going to give the extra tax revenue you yourself have admitted is necessary in a minimally damaging way.

    Keep in mind that this is true even for parliamentary systems where large-scale overhauls of the tax code are much, much easier.

    And given the difficult politics and comparatively radical nature of a VAT, I don’t see it as some way to kick the can on base-broadening, rate-lowering tax reform. A VAT is not going to get introduced before legislators have looked at the mortgage-interest deduction etc.

  2. A VAT in exchange for tax reform with no additional revenue to pay down the debt?

    when do we pay down the debt and how?

    this is nutty.

    we’ve run up this huge debt. We’re beating the current POTUS over the head about it – and there are no plans to actually deal with it other than the POTUS who wants the revenue from tax reform to pay it down.

    Makes me wonder why the folks who want to change the tax code and cut taxes are serious about the debt at all.
    they just act like it’s not there.

    1. “We’re beating the current POTUS over the head about it – ”
      Well, he’s busy beating the GOP over the head about the sequester(aka deficit reduction.)

      “and there are no plans to actually deal with it other than the POTUS who wants the revenue from tax reform to pay it down.”

      Where’s that plan Larry? Where’s his projections for a surplus to pay down the debt?

  3. A consumption tax code in place of the income tax,estate & capital gains has the potential to get America out of our over reliance on consumption.Plus a consumption tax is the only tax that can get revenue from the enormous US underground economy,drug dealers,prostitution,under the table wages etc.The VAT tax has some adherence problems,in some European countries I’ve heard the final tax on the sale part of a VAT can be manipulated.

  4. juandos

    Why am I not suprised that the clique of clowns at the Brookings would embrace more socialist crapola instead of considering the K.I.S.S. theory?

    Why not embrace the idea of cutting out all entitlements for five to ten years instead?

    Maybe the Brookings bunch could use some new reading material

  5. A V.A.T. hides the true cost of government where the Fairtax is paid in full at the final consumer level. One complaint about the Fairtax is that it is too high. That is the true cost of government.

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