“Our tax laws now favor foreign production and should be changed to favor domestic production. But with jobs and deficits at a critical stage, President Obama should immediately propose a 5% value added tax to replace the corporate income tax. A 2% VAT will more than replace the revenues lost from canceling the corporate tax. A 1% VAT will pay for the cost of health care, and 2% can be used to stop deficits.
This is realistic and doable. Responding to anti-tax members of Congress, a 5% VAT in place of the corporate income tax eliminates business taxes with more revenues.