A value-added tax (VAT) that would come with the elimination of corporate and individual income taxes is the best way to get jobs rolling in the U.S., investor Wilbur Ross said.
While the plan that President Obama will present to Congress Monday has some merits, it also contains weaknesses that could make it too costly to implement, Ross said in a CNBC interview.
“We need something that is very far-reaching, very dramatic,” said Ross, the head of W.L. Ross & Co. “An idea I’ve been in favor of is to scrap all of the corporate income taxes, all of the individual income taxes, and substitute a value-added tax on all goods imported into the country and manufactured and consumed here, and then rebate it on exports.”
According to his calculations, Ross said the VAT would generate $80 billion net revenue to the government, while avoiding the pitfalls of Obama’s $447 billion plan.