Tags: taxes | washington | reform

O’Neill Endorses Value-Added Tax

By    |   Sunday, 15 Aug 2010 06:43 PM

The current focus on whether to extend the Bush era tax cuts misses the point, says Paul O’Neill, President George W. Bush’s first Treasury secretary.

“I don’t think it’s the most important question,” he told Bloomberg. The country would be better off with a value-added tax, he said.

“We need fundamental tax reform, and I wish the current administration was talking about that,” O'Neill said. “While continuation of the 2001, 2003 tax cuts isn’t insignificant, they are insignificant compared to the colossal disaster we have with our tax system.”

Despite 15,000 pages of tax regulations, people avoid them, O’Neill says.

“By best estimates we’re under-collecting taxes to the tune of $400 billion a year,” he said. “That doesn’t seem like a very productive way for a society to conduct its business.”

President Obama should lead a national discussion on real tax reform, O’Neill says. “Ideally we should get rid of individual and corporate taxes and implement a valued-added tax system or consumption-based system with rebates to lower-income people,” he said.

That would enable needed revenue to be collected in a fair way, O’Neill says.

As for the Bush-era tax cuts, experts’ views range across the board as to whether they should be continued for no one, everyone or just the non-wealthy.

Former Federal Reserve Chairman Alan Greenspan thinks the cuts should expire for everyone. “I’m in favor of tax cuts, but not with borrowed money,” he told The New York Times.

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The current focus on whether to extend the Bush era tax cuts misses the point, says Paul O Neill, President George W. Bush s first Treasury secretary. I don t think it s the most important question, he told Bloomberg. The country would be better off with a value-added...
taxes,washington,reform
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2010-43-15
Sunday, 15 Aug 2010 06:43 PM
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