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VAT is politically contentious for both parties

Dore 21 - reporter on the Personal Finance team, covering tax planning (Kate Dore, “The value-added tax brings in billions for other countries, but the U.S. doesn’t have one”, CNBC, June 21, 2021, https://www.cnbc.com/2021/06/21/this-tax-brings-in-billions-worldwide-why-theres-no-vat-in-the-us.html)//TMMS

Why there’s no value-added tax in the U.S. Although VATs have been lucrative elsewhere, the levy faces political hurdles in the United States, said Bunn. Some Democrats see the VAT as regressive because it hits families regardless of income, whereas Republicans may fight a broad-based tax increase, he said. Plus, it may also be a tough sell to lawmakers in states without a sales tax, Bunn added. The logistics of a VAT may also elicit pushback from the business community, Kopczuk said.

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