Friday, April 23, 2010
Former U.S. Senator Fritz Hollings of South Carolina has taken exception with the Senate’s recent decision to reject the imposition of a valued added tax (VAT). Hollings, a conservative Democrat, believes a VAT should be used to replace the corporate income tax in order to raise revenues and boost American exports. Hollings points out that the Senate resolution only related to imposing a VAT in addition to current taxes.
Hollings argues for a 5% VAT, of which 2% would go towards replacing corporate income taxes, 1% would help cover health care reform and the remaining 2% would pay down trillion dollar deficits.
A VAT would be “politician’s dream,” according to Hollings, because it would result in raising revenues and cutting taxes.
“The 5% VAT is a winner for the poor, the middle-class, and the rich, and it is absolutely necessary in the trade war,” he writes.
-Noel Brinkerhoff
Replace the Corporate Income Tax! (by Fritz Hollings, Huffington Post)
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