Value-Added Taxes and Small Business

Research Report

Value-Added Taxes and Small Business

Abstract

The possibility of introducing a value-added tax (VAT) in the United States has been discussed on a sporadic basis for several decades. In this policy brief, which is based on Gale, Gelfond, and Krupkin (2015), we examine issues related to small business and entrepreneurship under a VAT. We also discuss the basic mechanics of a VAT, including the important distinction between goods or businesses that are zero-rated compared to those that are exempt.

Research Area: 
To reuse content from Urban Institute, visit copyright.com, search for the publications, choose from a list of licenses, and complete the transaction.