Who bears the burden of federal excise taxes? Q.Who bears the burden of federal excise taxes? A.Workers, owners of capital, and households that consume a disproportionate amount of taxed items all bear the burden of federal excise taxes. Read more about Who bears the burden of federal excise taxes?
Who would bear the burden of a VAT? Q.Who would bear the burden of a VAT? A.A value-added tax (VAT) is a tax on consumption. Poorer households spend a larger proportion of their income. A VAT is therefore regressive if it is measured relative to current income and if it is introduced without other policy adjustments. A VAT is less regressive if measured relative to lifetime income. Read more about Who would bear the burden of a VAT?
What would the tax rate be under a national retail sales tax? Q.What would the tax rate be under a national retail sales tax? A.It depends on assumptions about the breadth of the tax base, tax evasion and avoidance, and the effects on economic growth. It also depends on how the tax rate is measured. Estimates for a tax that would replace revenues from the current federal tax system range from 31 percent to 65 percent. However, these estimates are dated, since revenue levels have recently changed, in part due to the 2017 Tax Cuts and Jobs Act. Read more about What would the tax rate be under a national retail sales tax?
