A VAT for the United States: Part of the Solution

Research Report

A VAT for the United States: Part of the Solution

Abstract

The United States faces a large medium-term federal budget deficit and an unsustainable long-term fiscal gap. Left unattended, these shortfalls will hobble and eventually cripple the economy. The only plausible way to close the gap is through a combination of spending cuts and tax increases. This paper discusses why a federal VAT should be part of a constructive solution to the fiscal problem

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