In this video, Michael Stumo lays out the full case for U.S. consideration of consumption taxes as a part of comprehensive tax reform, for the purpose of improving our trade balance. The primary purpose is to neutralize the tariff and subsidy impact of foreign VATs, which help cause the U.S. trade deficit.
The speech occurred at the National Press Club on June 17, 2013. The video compilation was done professionally and can be used by you, dear reader, to educate your colleagues on the issue.
Professor Michael Graetz also spoke. He shows how the VAT can be incorporated into our current tax system in a revenue neutral and distribution neutral manner. The issue is not whether the VAT itself is a new tax or a regressive tax, but rather whether or not the entire tax system reform results in increased taxes or changed distribution of the tax burden.
