VAT Hearing by House Ways & Means and Relevance for Tax Reform

A July 26 Ways and Means Committee hearing focused on consumption-based tax systems. Although there are a few different formulations for a consumption tax, the committee only addressed two - the "fair tax" (a national retail sales tax) and the value-added tax (for example, the "flat tax" which is also a consumption tax, was ignored).



There are lessons we can learn from the over 130 countries that use a VAT. I think there is also some benefit to states if they replace their out-dated, cumbersome sales tax regime with a VAT. Also, perhaps other countries can have lower corporate income tax rates because they have a national VAT.



I have a short article published today in the AICPA Corporate Taxation Insider on the VAT discussion at the July 26 hearing and the relevance to tax reform in the US - "VAT Lessons for U.S. Tax Reform."



And for a list of tax reform hearings in the 112th Congress - see this list here.



What do you think about a VAT for the US?

VAT Hearing by House Ways & Means and Relevance for Tax Reform 2011-08-25T13:39:00-07:00 Rating: 4.5 Diposkan Oleh: Unknown