Research Report Value-Added Taxes and Small Business
William G. Gale, Hilary Gelfond, Aaron Krupkin
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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 Areas Taxes and budgets
Tags Taxes and business Community and economic development Small businesses
Policy Centers Urban-Brookings Tax Policy Center