Paul L. Caron

Monday, April 5, 2010

Thuronyi Presents A VAT for the US? Today at Northwestern

Northwestern Victor Thuronyi (Senior Counsel (Taxation), International Monetary Fund) presents A VAT for the US? at Northwestern today as part of its Advanced Topics in Taxation Series organized by Tom Brennan and Charlotte Crane:

Victor's paper (which will be published once bureaucratic clearance is obtained at IMF) argues that the VAT should be considered for the US only after other options for dealing with the budget deficit are exhausted (spending reductions, income tax reform, other taxes such as a carbon tax). If it turns out that further revenue is needed, a choice must be made between VAT and a modified retail sales tax (an RST with VAT-like features). Victor concludes that the choice between VAT and modified RST may depend on the rates -- at relatively low rates, the modified RST may be the more attractive option. Bottom line: the answer to the question: Does the US need a VAT? is "It depends".

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No country needs new tax...

Posted by: econoir | Apr 5, 2010 3:14:25 PM