Raising revenue with a progressive-value added tax

Gale proposes a broad-based, credit-invoice value-added tax (VAT)—sometimes referred to as a “goods and services” tax. This VAT would include a rebate to households that renders the tax progressive as well as efficient. By lowering the real value of existing assets, it would also function as an implicit one-time tax on accumulated wealth.

Source: brookings.edu

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