The Value-Added Tax - A Proposal For The 80's

As this issue goes to press, Congressman Ullman has introduced H.R. 7015 which, among other things revises certain aspects of the value-added tax proposed in H.R. 5665.Food, housing and medical costs would be exempted from the VAT, and the revenue estimates are revised downard from $130 billion to $115 billion.The new bill includes a provision to partially offset the marriage penalty tax and would significantly liberalize the rules for capital cost recoveries.2. The concept of a tax on consumption, or expenditures, is not new.An argument advanced is that receipts of funds or accretions to wealth are not income until they are enjoyed or consumed, at which point the tax should apply.A basic