A tax on value added makes sense to me.
The other developed countries use it, and they give it back at the border to help exporting.
It's simpler than a lot of taxes (well, the income tax, for example).
It's regressive, yes. We could balance it out with other measures. Or, in Theoryland, we could avoid the regressivity (while creating other problems) with a single-factor unitary income tax using sales to source income. See, by analogy, http://www.taxfoundation.org/blog/show/505.html: "[T]he Commerce Clause requires a state to fairly apportion income. Does single-sales factor apportionment meet this requirement? The Supreme Court answered ‘yes’ in the case of Moorman Manufacturing Company v. Bair."
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This blog opposes the thinking behind the slogan “Read my lips! No new taxes!”
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- Pat Oglesby
- Chapel Hill, North Carolina, United States
- During the 1980s, I served as a Legislation Counsel and then as the Foreign Tax Counsel of the Joint Committee on Taxation of the United States Congress. For nearly two years into early 1990 I had the title of Chief Tax Counsel of the Committee on Finance of the United States Senate. In recent years, I was Adjunct Lecturer at the UNC-Chapel Hill Business School and Adjunct Professor at the UNC-Chapel Hill Law School.
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