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How Correcting a 1986 Tax Reform Error will Address All Four U.S. Deficits

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Many of our current problems are the direct result of flawed solutions of previous ones. Perhaps the biggest U.S. Tax Reform error was the omission of a Value Added Tax (VAT) from the 1986 Tax Reform Act, due to President Reagan's lack of enthusiasm. Any benefit of this Tax Reform Act was short lived, because it to lead to a global tax-cut war, where our trading partners matched or surpassed U.S. cuts. Most other advanced economies avoided our mistake by relying heavily on VATs as a way to efficiently collect revenue in a way that's compatible with economic growth.
The book I.O.U.S.A. highlights four U.S. deficits, namely, Leadership, Trade, Saving and Budget. The linked presentation: Top 10 Reasons for a VAT provides a deep-dive on how a federal Value Added Tax will have a very favorable effect on the latter three deficits and correcting a past policy error speaks well of leadership.

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