April 8, 2005

Time for a Value Added Tax (VAT)?

Bruce Bartlett:

GROWING numbers of policy analysts and politicians are saying that it may finally be time to consider a value-added tax as part of our federal revenue system. In years past, I would have been in the forefront of those denouncing the idea. But now, reluctantly, I have joined the pro-V.A.T. side. Here's why.

There are many arguments against a value-added tax, which is essentially a sales tax that applies at each stage of production. It is costly to put into effect, and it hits the poor and the elderly hardest because they spend a higher percentage of their income.

Posted by James Zellmer at April 8, 2005 12:01 AM | Subscribe to this site via RSS:
Posted to Taxes