The Value-Added Tax: Key to Deficit Reduction?

By Charles E. McLure Jr.; Mark A. Bloomfield | Go to book overview

9
Intergovernmental Issues

The American debate on the value-added tax is complicated by an issue that was virtually absent from the European discussion of the VAT in the early 1960s. Although the United States has a federal system of government, five of the six original members of the European Economic Community have unitary governments; that is, except in West Germany, no government comparable to the American states is interposed between the national and local governments.

The existence of state governments raises at least two kinds of intergovernmental issues. First, a decision must be made about whether to tax the purchases and the commercial activities of subnational governments. These issues are discussed in chapter 8. Second, and more important, since the states and their localities have historically had exclusive access to the general sales tax base, the possibility of the federal government's introducing a VAT or retail sales tax raises fundamental issues of intergovernmental fiscal relations. 1 These are the topics of this chapter. 2

The question most commonly asked is whether federal entry into this area would preempt the sales tax base, making it more difficult for state and local governments to tap that traditional revenue source. In addition, there are important issues of coordinating a federal sales tax—whether a VAT or a retail sales tax—with the sales taxes levied by the states. These include concern for compliance problems of business, questions of the coordination of collection techniques (VAT versus retail sales tax) used by the two levels of government, and harmonization of state and federal efforts. Understanding of these more technical issues is necessary to flesh out concern about federal preemption.


Setting the Stage

A few preliminary remarks, including a statement of criteria of appraisal, are in order. First, the entire discussion of this chapter is predicated on the assumption that state and local governments will

-152-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Value-Added Tax: Key to Deficit Reduction?
Table of contents

Table of contents

  • The Value-Added Tax - Key to Deficit Reduction? *
  • Contents *
  • Foreword xi
  • Summary 1
  • 1: Introduction 3
  • 2: The Need for a Value-Added Tax 10
  • 3: The Nature and Base of the Value-Added Tax 15
  • 4: Economic Effects 28
  • 5: Alternative Revenue Sources 60
  • 6: Issues in the Design of a Value-Added Tax 71
  • 7: Alternative Forms of General Sales Tax 103
  • 8: Problem Industries and Activities 115
  • 9: Intergovernmental Issues 152
  • 10: Conclusions 160
  • Commentary Mark A. Bloomfield 165
  • Index 181
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 184

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.