Social VAT – great idea for after the revolution

January 18, 2012

Also known as fiscal devaluation, a shift of taxes from labour to consumption might help euro zone members rebalance trade. But the actual effect would be limited. The real appeal is conceptual. When goods are ample and jobs are scarce, taxes should not discourage hiring.

Central bank independence at risk in 2013

December 17, 2012

The Fed celebrates its centennial next year. In recent decades the independence of the U.S. lender of last resort and its peers elsewhere has become an article of faith. But with Western central bank balance sheets swelling toward 30 pct of GDP, that faith is far from rock solid.

Why Obama tax reversal hints at a VAT

October 13, 2009

The Obama administration had an easy economic case to make. Not only would the tax plan hurt American corporate competitiveness (most other countries don't tax their companies' overseas profits), the changes would be a de facto $20 billion-a-year tax increase on business during a time of profound economic weakness

Stirring up a VAT

October 2, 2009

Given huge federal budget deficits, it seems likely that American taxes will be heading higher, and not just those on the wealthy. Indeed, recent signs point to a broadly applied value-added tax (VAT) in America's future.