What is a VAT? Q.What is a VAT? A.The value-added tax (VAT) is the world’s most common form of consumption tax, in place in more than 160 countries, including every economically advanced nation except the United States. Read more about What is 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?
Who bears the burden of a national retail sales tax? Q.Who bears the burden of a national retail sales tax? A.A revenue-neutral national retail sales tax would be more regressive than the income tax it replaces. Read more about Who bears the burden of a national retail sales tax?
