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Research report

Implications of Different Bases for a VAT

Eric Toder, James R. Nunns, Joseph Rosenberg
February 14, 2012
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Abstract

A value added tax (VAT) with a broad base and a VAT that excludes food, housing, and medical care would both impose larger burdens as a share of income on low-income than on high-income taxpayers. A rebate aimed at low-income taxpayers would reduce their VAT burden more than exclusions of selected goods and services. A broad-based VAT that was accompanied by a rebate consisting of an earnings credit up to a ceiling amount and an adjustment in cash transfer payments would impose relatively smaller burdens on lower than on higher income taxpayers throughout most of the income distribution.

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Individual Taxes Campaigns, Proposals, and Reforms Federal Budget and Economy
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Meet the Experts

  • Eric Toder
    Institute Fellow and Codirector, Tax Policy Center
  • James R. Nunns
    Urban Institute Associate
  • Joseph Rosenberg
    Senior Research Associate
Research report

New Evidence on The Effect of The TCJA On the Housing Market

Robert McClelland, Livia Mucciolo, Safia Sayed
March 30, 2022
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