Poll: Is It Time for a VAT in the U.S.?

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In conversations about changing the U.S. tax system, it often doesn’t take long for the possibility of a value-added tax to come up.

Most other developed nations already have a VAT—a system in which taxes are paid by each business in the different stages of production of a good or service, and, ultimately, directly or indirectly, by the consumer.

VAT is considered a consumption tax, since it taxes what people consume, rather than how much they earn or their profits from investment. That’s also a reason why some consider it unfair for lower-income households. And critics say it could let government take a bigger slice of the overall economic pie, enabling higher spending.

Its supporters, meanwhile, say VAT is better for the economy than an income tax because it doesn’t tax savings or investment. It’s also a way to put a serious dent in the federal deficit. Republican supporters are willing to institute a VAT, but only if it replaces other taxes and doesn’t increase the overall U.S. tax burden.

So, what’s your view? Register your vote and leave us your comments. We may use them in print in a coming special report.

Related reading:

How the Low-Tax U.S. Stacks Up Against Other Countries

Value-Added Tax Catches On in Republican Presidential Race

from Real Time Economics http://ift.tt/1KKDAgB