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Video on the Value Added Tax

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The following video on the Value Added Tax was produced by Steve Abramson:

 

2 Responses to “Video on the Value Added Tax”

  1. China Watcher says:

    A nice argument that stops short of a real solution. Replacing the corporate tax with a low VAT is good for corporations, especially those who do not off-shore part of their own supply chain. But it does nothing to deal with the genuine problem of regressivity (impact on lower-income folks) and is too low to make a profound difference on our trade balance. How can 4.5% offset the advantage that China (17%), Mexico (15%) and Western Europeans (as high as 26%) enjoy today? This is a half-way measure with half-way benefits. Now is the time for really smart tax reform hat rewards savings, investment in plant and equipment, production and export.

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