In his new book, “Back to Work: Why We Need Smart Government for a Strong Ecconomy,” Knopf, 11/08/11, President Bill Clinton again calls for (see TV interviews under “Audio/Video”) a shift away from income taxation to a consumption tax:
“Among wealthy nations, we now have the second-highest corporate tax rate in the world, and because of recent changes in other countries we’re now the only wealthy nation that taxes income earned overseas when it’s brought back home. We’ve also fallen to seventeenth in the level of our research and development tax incentives. We have to become more competitive. Big corporations don’t get hurt by the current system. They just put plants in other places, create good jobs there, and leave their earnings there.
In the future, we’ll have to design a progressive revenue system that relies more on personal income and consumption taxes, like the value-added tax, which also would help to increase our exports…making our products more affordable in other markets.”