Premium
Misconceptions about Value‐Added and Retail Sales Taxes: Are They Barriers to Sensible Tax Policy?
Author(s) -
Mikesell John L.
Publication year - 2014
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/pbaf.12038
Subject(s) - value added tax , transparency (behavior) , retail sales , sales tax , value (mathematics) , economics , consumption (sociology) , ad valorem tax , public economics , tax policy , indirect tax , monetary economics , business , tax reform , marketing , law , political science , social science , machine learning , sociology , computer science
Retail sales and value‐added taxes both aim to tax consumption, but lawmakers, the public, and academics view them differently. Several American states have sought increased retail sales tax (RST) reliance, some have argued for a national RST, but a value‐added tax (VAT) remains anathema. Conversely, international observers strongly reject the RST in favor of the VAT. This paper examines these views from the standpoints of administration, transparency, rate increases, and breadth to see how misconceptions might be involved.