Abstract

http://ssrn.com/abstract=637386
 
 

Citations



 


 



Risk, Rents, and Regressivity: Why the United States Needs Both an Income Tax and a VAT


Reuven S. Avi-Yonah


University of Michigan Law School


Tax Notes, Vol. 105, No. 13, December 20, 2004

Abstract:     
In this article, Prof. Avi-Yonah argues that the legal academic debate about fundamental tax reform from 1974 onward has been skewed by the assumption that a consumption tax must replace the income tax. He addresses three of the major issue in recent writings on the income/consumption tax debate, and shows how none of the arguments in favor of the consumption tax are conclusive. Avi-Yonah also addresses the various consumption tax proposals that have been made and shows that they are all deficient in comparison with a VAT, as well as failing to achieve the goals of an income tax. Finally, he develops the proposal that the United States should adopt a VAT in addition to the existing income tax, and addresses some of its implications (for example, for the state and local sales tax). He then distinguishes the proposal from one made by Prof. Michael Graetz to substitute a VAT for the income tax on middle-class taxpayers, and argues that while the Graetz proposal is sensible, we cannot afford it.

Accepted Paper Series


Not Available For Download

Date posted: December 17, 2004  

Suggested Citation

Avi-Yonah, Reuven S., Risk, Rents, and Regressivity: Why the United States Needs Both an Income Tax and a VAT. Tax Notes, Vol. 105, No. 13, December 20, 2004. Available at SSRN: http://ssrn.com/abstract=637386

Contact Information

Reuven S. Avi-Yonah (Contact Author)
University of Michigan Law School ( email )
625 South State Street
Ann Arbor, MI 48109-1215
United States
734-647-4033 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 576

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.407 seconds