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Josh Barro

Value-Added Tax Would Raise Tons for U.S. Coffers

With the exception of the U.S., every country in the Organization for Economic Cooperation and Development has a value-added tax -- one on business sales that functions much like a retail sales tax. It’s time for the U.S. to join that club.

The is that they have a broad base, and they don’t discourage investment. They can raise a lot of money without causing nearly as much economic damage as income taxes. They are also much harder to evade than sales taxes.