The impact of a value-added tax on the cash flow of corporations.
Advocates of a value-added tax claim VAT is superior to the existing corporate income tax (CIT) in the area of economic efficiency, i.e., tax neutrality. Since tax neutrality is a major criterion for tax policy analysis, VAT's superior allocative efficiency relative to a corporate income tax is an argument VAT proponents use to promote adoption of a value-added tax. VAT supporters maintain that CIT distorts allocation of production resources while VAT, a proportional tax, is insensitive to production methods or use of production resources.
Authors: | Murphy, John Aloysius Daniel. |
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Institutions: | Florida Atlantic University |
Subject: | Business Administration | Accounting |
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