Tag: ‘VAT’

All's fair in debates and taxes...

By :: January 19th, 2016

Bernie Sanders: Medicare, and tax increases, for all. The Democratic presidential hopeful proposed a $1.38 trillion universal health care plan and the tax hikes aimed to pay for it, just before Sunday’s Democratic debate. Sanders would impose a 2.2 percent income-based premium on  all households, though he says many would come out ahead since he […]

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Ted Cruz’s Business Flat Tax is a VAT

By :: January 15th, 2016

At last night’s GOP debate, Senator Marco Rubio accused Ted Cruz of sneaking a value-added tax (VAT) into his tax reform plan. RUBIO: Here is the one thing I’m not going to do. I’m not going to have something that Ted described in his tax plan. It’s called the value-added tax. And it’s a tax […]

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Is a Consumption Tax Talk Making a Comeback?

By :: March 31st, 2015

Maybe it’s just because Congress is on spring break and tax wonks don’t have much to talk about, but suddenly the idea of a consumption tax is getting a new look. The tax plan proposed earlier this month by senators Mike Lee (R-UT) and Marco Rubio (R-FL) is one form of the levy. And tax […]

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No Hitting the Brakes for Tax Breaks…

By :: February 13th, 2015

Some House GOPers want to help millionaires save for college. Yesterday the House Ways and Means Committee approved a bill to expand the Sec. 529 college savings plan and rejected a Democratic amendment to limit the plans for people earning more than $3 million a year. Bloomberg reports that the amendment would have affected about […]

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Revenues, ‘Rithmetic, and the Power of Magical Thinking

By :: June 20th, 2014

What’s a nation to do with as-yet-untaxed US multinational corporate income? The Center on Budget and Policy Priorities analyzes what a repatriation tax holiday might mean for the US economy. In short: it wouldn’t help. The Business Roundtable, a group of corporate chief executives, doesn’t want to see temporary revenues from the tax holiday used […]

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Depreciation, Digital Economies, Carbon, and Oil

By :: May 30th, 2014

Appreciation for depreciation is really, really expensive. Perhaps unsurprisingly, the House Ways and Means Committee easily approved permanent restoration of bonus depreciation for capital investment yesterday. The Committee’s party-line vote would make permanent a measure to let companies write off more than half the cost of  investments in the same year they are made. The […]

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A Value-Added Tax That Won’t Raise Revenues Or Boost Taxes on the Poor

By :: November 26th, 2013

For many years, Michael Graetz, now a law professor at Columbia University, has been promoting a national Value-Added Tax (VAT) that would become the principal levy paid by most Americans. VATs–and similar broad-based consumption taxes–are enormously controversial in the U.S. even though they are ubiquitous throughout the rest of the world and enjoy widespread support […]

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Can the Income Tax Fund the Government We Want?

By :: February 5th, 2013

Can the income tax fund the government we seem to want? Probably not. Will lawmakers create a revenue system that will? Not anytime soon. That was the consensus of four tax policy experts at an Urban Institute panel I moderated this afternoon. The panelists–historian Joe Thorndike, Urban Institute economist and tax reform veteran Gene Steuerle, […]

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What Tax Reform Would Mean for the States

By :: February 7th, 2012

What would fundamental changes in the federal tax code mean for state and local governments? Would it limit their ability to raise or borrow money? Would it make their revenue systems more or less progressive or even work more smoothly? Last Friday, I participated in a joint Tax Policy Center and UCLA Law School conference […]

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What a Value-Added Tax Would Mean for the Tax Code—and the Economy

By :: January 31st, 2012

A well-designed Value-Added Tax could simplify the tax code for most households and finance significant reductions in corporate and individual income tax rates without adding to the budget deficit. And it could be a key piece of a revenue system that is both progressive and less intrusive in economic decisions than today’s law. That’s the […]

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