Entrepreneurship and Small Business Under a Value-Added Tax

Research Report

Entrepreneurship and Small Business Under a Value-Added Tax

Abstract

The possibility of introducing a value-added tax (VAT) in the United States has been discussed on a sporadic basis for several decades. This paper examines issues related to small business and entrepreneurship under a VAT. Section II discusses the basic mechanics of a VAT, including the important distinction between goods or businesses that are zero-rated compared with those that are exempt.

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