The Value-Added Tax: Key to Deficit Reduction?

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

Commentary
Mark A. Bloomfield

Charles McLure's monograph is an excellent discussion of the advantages and disadvantages of a value-added tax (VAT), a business transfer tax (BTT), a retail sales tax, and specific excise taxes such as energy taxes. It also provides a thorough treatment of the technical aspects of implementing a consumption tax. The monograph is timely, needed, and certain to be widely and usefully read by tax policy experts and academicians.

Politicians and economists will sooner or later put the consumption tax on the nation's agenda. This brief commentary on McLure's detailed treatment of the subject makes the political and economic case for a consumption tax in our fiscal structure and responds to common criticisms of a VAT or retail sales tax.


The Political Case for a VAT

It may be peculiar or at least lonely to argue with conviction for a consumption tax to replace part of the individual and corporate income tax or as an additional tax to reduce the deficit. McLure, however, makes the case well that "many Americans concerned about fiscal affairs seem to be increasingly convinced that a new source of federal revenue must be found." 1 Of course, as McLure notes, there is no reason why we cannot raise income tax rates, but doing so, he rightly says, would undermine one of the primary reasons for the current round of tax reform. 2 The monumental Tax Reform Act of 1986 trades off lower individual and corporate income tax rates for some of

____________________
Mark A. Bloomfield is president of the American Council for Capital Formation and its education and research affiliate, the American Council for Capital Formation Center for Policy Research.The views expressed are not necessarily those of either organization. The author is greatly indebted to Dr. Margo Thorning, chief economist of the American Council for Capital Formation, for her help in developing the theme of this commentary, her invaluable research, and her wisdom on matters economic and political.

-165-

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.