Abstract

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The Discrete Charm of the VAT

Graeme S. Cooper
University of Sydney - Faculty of Law

Sydney Law School Research Paper No. 07/65

Abstract:
This paper examines the claims commonly made for the superiority of a value-added tax over other common forms of consumption tax - usually a wholesale or manufacturers sales tax, or a retail sales tax (of the kind seen in many States of the USA). The paper questions whether the VAT deserves its esteemed position in light of the particular difficulties it introduces for taxpayers and administrators compared to these alternatives, and the unlikely ability of the tax to match of some of the claims to superiority made for it by some of its supporters.

Keywords: value-added taxation, consumption tax

JEL Classifications: K34, H24, H25

Accepted Paper Series