VAT in a Federal System: Lessons from Canada

23 Pages Posted: 5 Dec 2014

See all articles by Richard M. Bird

Richard M. Bird

University of Toronto - Joseph L. Rotman School of Management; Georgia State University - Andrew Young School of Public Policy

Michael Smart

University of Toronto - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Multiple version iconThere are 2 versions of this paper

Date Written: Winter 2014

Abstract

For many years it has been argued that the value‐added tax (VAT) is neither desirable nor feasible as a subnational tax. At the same time, the existence of state retail sales taxes (RSTs) has been seen by some to be a major obstacle to introducing a federal VAT in the United States. Canada has demonstrated that both these barriers can be overcome. A federal VAT can work well regardless how (or if) states tax sales. In addition, a federal VAT may make it more feasible for states, if they wish, to introduce their own VATs.

Suggested Citation

Bird, Richard Miller and Smart, Michael, VAT in a Federal System: Lessons from Canada (Winter 2014). Public Budgeting & Finance, Vol. 34, Issue 4, pp. 38-60, 2014, Available at SSRN: https://ssrn.com/abstract=2534198 or http://dx.doi.org/10.1111/pbaf.12052

Richard Miller Bird (Contact Author)

University of Toronto - Joseph L. Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada
905-274-8841 (Phone)

Georgia State University - Andrew Young School of Public Policy

International Studies Program
Atlanta, GA 30303-3083
United States

HOME PAGE: http://www.aysps.gsu.edu

Michael Smart

University of Toronto - Department of Economics ( email )

150 St. George Street
Institute for Policy Analysis
Toronto, Ontario M5S 3G7
Canada
416-978-5119 (Phone)
416-978-6713 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
922
PlumX Metrics