Too Clever by Half: The Politics and Optics of the Two-Part VAT

Alan Viard ()

National Tax Journal, 2018, vol. 71, issue 2, 399-416

Abstract: Some tax reform proposals, including the Hall‐Rabushka flat tax and the Bradford X tax, split a conventional VAT into a household wage tax and a business cash flow tax. Supporters of the two-part VAT seek to preserve most of the VAT's economic advantages while avoiding its regressivity and its politically toxic label in the United States. However, recent experience, culminating in the 2016‐2017 discussion of the House Republican blueprint, demonstrates that the two-part VAT has faced severe political challenges due to misperceptions of its rationale and economic effects.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.17310/ntj.2018.2.08 (text/html)
Access is restricted to subscribers and members of the National Tax Association.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ntj:journl:v:71:y:2018:i:2:p:399-416.html

Access Statistics for this article

National Tax Journal is currently edited by Stacy Dickert-Conlin and William M. Gentry

More articles in National Tax Journal from National Tax Association, National Tax Journal Contact information at EDIRC.
Bibliographic data for series maintained by The University of Chicago Press ().