Tags: Money | White House | VAT | carbon | tax

White House Eyes Value-Added Tax, Carbon Tax

Image: White House Eyes Value-Added Tax, Carbon Tax
President Donald Trump and White House National Economic Council Director Gary Cohn (right) (AP Photo/Evan Vucci)

By    |   Tuesday, 04 Apr 2017 03:53 PM

White House officials are exploring new tax ideas to boost both revenues and the economy that could also realistically pass in Congress. President Donald Trump has indicated reforming the nation's tax code was a priority of his agenda.

Under consideration is the creation of two new taxes, a value-added tax (VAT) and a carbon tax, sources told The Washington Post. A value-added tax would be paid by both businesses and consumers, while a carbon tax targeted greenhouse gas emissions from burning fossil fuels, the article explained.

Support varies with each proposal. Many economists shy away from a value-added tax, popular in other countries, because it might hit lower-income workers disproportionately, while others support the idea because it efficiently raises revenue without discouraging work or investment, the Post reported Tuesday.

Some Republicans do not support a VAT, and Caroline Freund, an economist at the Peterson Institute for International Economics, said she doubted it would get widespread GOP backing.

"I've always been told 'VAT is a four-letter word on the Hill,' even though it's only three letters," Freund told the Post. "To me, that is the right way to go, and I'm just really pleased to hear that someone's thinking like that."

A carbon tax, which has some Republican support, might not fare much better, as any tax on emissions would likely meet with opposition from the fossil-fuel industry. Democratic support for the idea has been mixed as well.

Support for another recent tax proposal called the border-adjustment tax has waned among Republicans. It would essentially tax imports with the hope of encouraging manufacturers to produce goods in the U.S., but could raise costs for consumers.

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
Politics
White House officials are exploring new tax ideas to boost both revenues and the economy that could also realistically pass in Congress.
White House, VAT, carbon, tax
274
2017-53-04
Tuesday, 04 Apr 2017 03:53 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved