My good friend, Peter Tanous, has written a thoughtful article for CNBC on the necessity of the U.S. joining most of the rest of the world in adopting a Value Added Tax as a critically important step toward significantly reducing our dangerously out of control debt problems. I believe firmly that we must also reduce senseless Federal spending but, realistically, that alone will not do the job. We will also need a reasonable and fair way to increase Federal revenues. It’s time for the VAT tax coupled with a substantial reduction in wasteful Federal spending.
From the article:
There is only one way to raise the amounts that will make a difference and reduce the deficit: Do what every other developed country has done and institute a value-added tax.
The VAT, as practiced in most countries, is a tax added at various stages of production, rather than at a point of sale. As such, it is invisible since it is not an annoying add-on at the cash register.
Read the full article here.