Tyson, Laura D’Andrea, “The Logic of Cutting Corporate Taxes,” Economix blog, The New York Times, 04/08/11

Professor Graetz, and more recently, William G. Gale and Mr. Harris have proposed introducing a value-added tax to reduce the deficit and to finance a reduction in the corporate tax rate.

Most countries that have reduced their corporate tax rates have a value added tax that accounts for a significant share of their tax revenues. To offset the regressive effects of a value added tax, countries have used lower value-added-tax rates on items like food, health care and education, as well as cash subsidies for poor households.

I believe that a federal value added tax with such offsets should be considered as part of a balanced multiyear deficit-reduction package that includes a sizeable reduction in the corporate tax rate.

http://economix.blogs.nytimes.com/2011/04/08/the-logic-of-cutting-corporate-taxes/?smid=tw-nytimes&seid=auto