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NA191-The best way to raise a VAT: look to new Zealand – Apr. 13, 2010

 

The best way to raise a VAT: look to new Zealand – Apr. 13, 2010

Paul Volcker fired the shot heard around the world -- or at least around tax circles-last week when he delivered some bad news for anyone paying taxes. It's time, he said, to consider one more: the value-added tax -- the consumption tax used widely across the Atlantic.

"If at the end of the day we need to raise taxes, we should raise taxes," said the head of President Obama's Economic Recovery Advisory Board, adding that the VAT, as it's called, is "not as toxic an idea" as we once thought. In fact, the United States is the only developed country that does not have a VAT.

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