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Is a Simple Flat Tax Really that Simple?
Tweet Share on Facebook April 28, 2010 Comment (24)You probably thought I was kidding last week when I said that, after dissecting the pros and cons of the value-added tax, we’d turn our attention to the flat tax. And I may have been. But the thoughtful responses we got have encouraged me to press on with our tax seminar. So what about that flat tax? Essentially, it would junk the convoluted tax code and impose a single rate on individual and business income. You could file your return on a postcard. Supporters say it would eliminate the distorting behavior of loopholes and deductions, promoting economic growth as people looked for productive investments instead of tax-avoiding ones. Is it that simple? Give me your thoughts on the flat tax at editor@usnews.com. And maybe next week we’ll look at that Fair Tax scheme.
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Is a VAT the Answer to Our Deficit Problems?
Tweet Share on Facebook April 20, 2010 Comment (21)Maybe this isn’t the best time to bring this up, with many of us just contemplating the damage on our tax returns, but there’s a new tax idea seeping its way into the public debate. It’s the Value Added Tax (VAT), the European staple that’s suddenly getting floated as a deficit panacea by politicians and economists up to and including the eminent Paul Volcker. This is a subject for one fine debate. Essentially a national sales tax, the VAT looks to be both efficient and addictive. It can variously placate and enrage folks on the left and the right. Sometimes simultaneously. I’d like to start a discussion on the merits and risks of the VAT. Give me your thoughts—or questions—at editor@usnews.com. And when we’re finished, maybe we can talk about the flat tax!
