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I work at the Tax Foundation--a non-profit, non-partisan policy research group--and we've been working a lot lately to try and explain exactly what a destinatio

I work at the Tax Foundation--a non-profit, non-partisan policy research group--and we've been working a lot lately to try and explain exactly what a destination-based cash flow tax is. There has been a lot of misunderstanding around it generally. It's not an idea that's been talked about in US tax policy much before. Our federal program director Kyle Pomerleau summed it up like this[1]: > destination-based cash-flow tax = current law - corp. tax + VAT - payroll tax. [1] https://twitter.com/kpomerleau/status/807355060170739712 https://twitter.com/kpomerleau/status/807355060170739712

spangry 10y ago
Is that under the assumption that payroll tax, in the long-run, is a tax on real labour income? Btw, I wish you guys the best of luck. It's surprisingly complex and difficult to explain. Just in case it's of some use, check out page 285 for a discussion on CFTs (followed by a discussion on payroll tax): https://taxreview.treasury.gov.au/content/downloads/final_report_part_2/AFTS_Final_Report_Part_2_Vol_1_Consolidated.pdf https://taxreview.treasury.gov.au/content/downloads/final_re... EDIT: This gets even more complex/interesting if you are of the view that labour-value add will be an increasingly smaller share of total production value-add in future (i.e. due to automation)...