Everyone Agrees, The VAT will Be Disastrous To The US Economy

Professors Martin Field and Robert Reich were on CNBC with Larry Kudlow today discussing how the VAT, or value added tax, would be a bad solution to America’s deficit problems.

They also brought up some other interesting solutions to solving America’s debt crisis.

  • 0:13 Prof. Feldstein: Feels we still don’t have enough data to know whether we are definitely out of the recession, risk remains for downturn
  • 1:10 Prof. Reich: Against VAT because its a hidden tax that effects all parts of production and that it would be a regressive tax
  • 2:00 Prof. Feldstein: Half of all Americans who file tax reserves don’t pay tax, with VAT they all would, costing citizens more
  • 5:45 Prof. Reich defence expenditures might be the thing to trim to save the U.S. money

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