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Achieving "Program Neutrality" Under a National Retail Sales Tax

Koenig, Evan F.

Abstract:

The imposition of a national retail sales tax would drive a wedge between the pretax and after-tax price levels. Failure to take the implications of this wedge fully into account has caused analysts to significantly underestimate the sales-tax rate that would be required to hold funding of current government programs constant in real terms.

Citation

Koenig, Evan F. (1999), Achieving "Program Neutrality" Under a National Retail Sales Tax, National Tax Journal, 52:4, pp. 683-98