Implementing a Progressive Consumption Tax: Advantages of Adopting the VAT Credit-Method System

Grinberg, Itai
December 2006
National Tax Journal;Dec2006, Vol. 59 Issue 4, p929
Academic Journal
A credit--method value--added tax, a payroll tax, and a business--level wage subsidy can approximate the economic and distributional consequences of a subtraction--method X--tax. Such a credit--method progressive consumption tax has administrative advantages as compared to a subtraction--method progressive consumption tax, once certain political factors are taken into account. Further, unlike a subtraction--method system, a credit--method progressive consumption tax could easily interact with other tax systems around the world and comply with World Trade Organization rules without sacrificing best practice VAT design features that allow for effective enforcement.


Related Articles

  • Corporate Tax Issues in the Baltics. Gencs, Valters; Bauda, Ilona // Corporate Business Taxation Monthly;Jun2009, Vol. 10 Issue 9, p13 

    Valters Gencs and Ilona Bauda discuss the similarities and differences in the corporate tax systems of the three Baltic States- Latvia, Lithuania and Estonia-in the last 20 years.

  • Our Three Great Spending Sprees.  // Saturday Evening Post;1/20/1934, Vol. 206 Issue 30, p22 

    Presents views on the U.S. government spending as of 1934. Purpose of the government spending; Increase in credit inflation of the government; Action to be taken to emerge from economic depression.

  • TAXATION OF FINANCIAL INTERMEDIARIES. Lent, George E. // National Tax Journal;Mar69, Vol. 22 Issue 1, p139 

    This article explores the Royal Commission's proposals for the taxation of financial intermediaries in Canada. The program formulated for the taxation is designed to achieve tax neutrality among competing institutions within the framework of its basic principles for the integration of...

  • Corporate tax cut looms as poor suffer. Munckton, Stuart // Green Left Weekly;2/2/2011, Issue 866, p19 

    The article reports on the efforts of President Barack Obama to call for a freeze on government spending, and lowering for the corporate tax rate in the U.S.

  • A Rich Man's Tax Program. Gass, Oscar // New Republic;10/16/44, Vol. 111 Issue 16, p481 

    Discusses the Committee for Economic Development's (CED) tax program in the U.S. Need to maintain federal expenditures of between $16 and $18 billion per year, excluding social security payments or retirement of debt; Contributions of citizens to monetarily support the federal government;...

  • Contract Management: Government Faces Challenges in Gathering Socioeconomic Data on Purchase Card Merchants: GAO-03-56. Cooper, David E. // GAO Reports;12/13/2002, p1 

    Government purchase cards have streamlined the process of acquiring goods and services by allowing employees to purchase directly from merchants rather than going through the regular procurement process. The government spent $13.8 billion using purchase cards in fiscal year 2001. However, the...

  • Tax credits problems even worse than feared. Smulian, Mark // Public Finance;7/8/2005, p10 

    Reports on the worsening tax credit problems in Great Britain. Prevalence of overpayments to claimants for every tax credit awarded; Figures representing the surge of administration costs of the tax credit systems; Efforts undertaken to resolve tax expenditure problems.

  • Budget offers little to cheer the IT industry. Huber, Nick // Computer Weekly;3/22/2005, p6 

    The article reports that British IT users and suppliers were left disappointed by the Budget, despite receiving a promise of enhanced tax incentives for research and development and lighter regulation for business. Business and IT groups were hoping the Budget would include tax incentives to...

  • Fiscal Slippage Rattles Markets.  // Latin America Monitor: Caribbean Monitor;Feb2003, Vol. 20 Issue 2, p10 

    Looks at the fiscal conditions of Jamaica in the third quarter of 2002. Budget deficit; Amount of budget allocated for 2003; Foreign currency sovereign credit rating assigned to Jamaica by Standard & Poor's.


Read the Article


Sign out of this library

Other Topics