Industrial Insight

VAT required to balance the budget. | July 27, 2010

July 27, 2010

What VAT Rate Would Be Needed To Erase Obama’s Deficits?

by Scott A. Hodge

Because a Value Added Tax (VAT) has been floated as a solution to the government’s budget problems, we did a back of the envelope estimate of the VAT rates that would be needed to raise enough money to cut Obama’s deficits to zero. Assuming a VAT base of 41 percent of GDP (the average of European-style VAT, we would need a 22 percent VAT in 2011 to close the $1.4 trillion deficit.

Posted in Uncategorized

Leave a Comment »

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

About author

I'm the executive vice president for a steel casting trade association, the Steel Founders' Society of America. I've got a crazy wife, five crazy children, three crazy people that married into the family, and two crazy fun little grandsons.







%d bloggers like this: