VAT: Touching the Ultimate Third Rail

As the U.S. is virtually the only industrializad nation without a value-added tax, the VAT is viewed largely by American citizens as an abstraction... at least for now. But wait until it becomes part of the tax regime landscape! Sticker shock of monumental proportions awaits Americans when a VAT is introduced...

VAT vs. The Bag Lady

Some readers argue passionately against a Value Added Tax (VAT) on the grounds it flunks what they call the "Bag Lady Test." I'm guessing many of you haven't heard of the Bag Lady Test. It's not something they teach in LLM tax programs, but it's quite real. It goes like this...

While Japanese Business Leads on Tax Reform, American Business Wimps Out

... [T]he approach taken by big business in Japan ... has advocated a substantial hike in Japan's value-added tax rate (currently at 5 percent) and a substantial cut in Japan's corporate tax rate (hovering at about 40 percent). The business federation's effort appear to be paying off. The...