The Value-Added Tax: Key to Deficit Reduction

Charles E. McLure · Mark A. Bloomfield

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Economic and Fiscal Studies Taxation and Compliance Studies Fiscal Policy and Economic Growth

Abstract

Interest in the value-added tax (VAT), a form of sales tax on consumption, will increase as the Gramm-Rudman-Hollings targets for deficit reduction become increasingly difficult to achieve through budget cuts. This monograph describes the implementation and economic effects of the VAT.

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