| Beware the Value-Added Tax
Mitchell, Daniel J.
Heritage Foundation Backgrounder #1852, May 16, 2005
” America is one of the few nations without a value-added tax (VAT), but there is growing pressure to impose the levy… Some like the VAT because it offers a new way to finance bigger government. Others like the VAT because—at least compared to the income tax—it does not impose as much damage on the economy. Some want to use the revenues from a VAT to facilitate tax reform and/or Social Security reform. There are even some people who believe that a VAT will somehow reduce the trade deficit. However, many people dislike the VAT, often for some of the reasons listed above.” Daniel J. Mitchell is a senior research f ellow in the Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation.
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