Research Report A Value-Added Tax for the United States: Part of the Solution
William G. Gale, Benjamin H. Harris
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The U.S. 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/or tax increases. This paper discusses why a federal Value Added Tax (VAT) should be part of a constructive solution to the fiscal problem.
Research Areas Economic mobility and inequality Taxes and budgets
Tags Fiscal policy State and local tax issues Individual taxes Federal budget and economy
Policy Centers Urban-Brookings Tax Policy Center