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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