Research Report Effects of Imposing a Value-Added Tax To Replace Payroll Taxes or Corporate Taxes
Joseph Rosenberg, Eric Toder
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This report examines the effects of imposing a new value added tax (VAT) in the United States and using the revenue raised to lower payroll tax and corporate income tax rates. We summarize how different forms of VAT operate and compare how a VAT, payroll tax, and corporate income treat different sources of income and the different ways each tax distort economic decision-making.
Research Areas Economic mobility and inequality Taxes and budgets
Tags Fiscal policy Individual taxes Federal budget and economy Income and wealth distribution
Policy Centers Urban-Brookings Tax Policy Center