... [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 ruling Democratic Party of Japan as well as the opposition Liberal Democrats both endorse a consumption tax hike and a corporate rate cut.
The United States needs to begin serious discussions about a VAT to reduce the deficit and a cut in the corporate rate to increase international competitiveness. But how can we even begin down this path if American business--which has the most to gain from such a change--does not provide some leadership?
View TaxAnalysts' Marty Sullivan's opinion in its entirety on TAX.com.
Hear insights on the U.S. need for a VAT in this Tax Law Community podcast.: An Interview with TaxAnalysts' Bob Goulder