Farrell, Chris, “Why a VAT Tax Is Where It’s At,” Viewpoint, Bloomberg/Business Week, 03/10/10

“(VAT’s) an idea worth reviving. No one really defends the current income tax system anymore. It’s far too complicated, with all kinds of loopholes and special interest favors, from various tax-sheltered retirement savings plans to multiple tax deductions and credits for home ownership to separate tax treatment for asset sales. Worse yet, arbitrary phase-outs of various levies, such as the estate tax, needlessly complicate the tax code and add to a widespread sense that it’s fundamentally unfair. Congress and the Administration could reward taxpayers with serious tax simplification. They could lower income tax rates greatly by broadening the tax base through eliminating as many credits and deductions and shelters as are politically practical. The highly efficient VAT would then supplement the income tax to restore long-term fiscal discipline.”