TY  - JOUR
AU  - Metcalf,Gilbert E.
TI  - Lifecycle vs. Annual Perspectives on the Incidence of A Value Added Tax
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4619
PY  - 1994
Y2  - June 1994
UR  - http://www.nber.org/papers/w4619
L1  - http://www.nber.org/papers/w4619.pdf
N1  - Author contact info:
Gilbert E. Metcalf
Room 3221
Department of the Treasury
Washington, DC 20220
1500 Pennsylvania Ave., NW
Tel: 202-622-0173
E-Mail: gilbert.metcalf@tufts.edu
AB  - This paper analyzes the steady state distribution of tax burdens of a Value Added Tax (VAT) in the United States using a lifetime perspective.  In contrast to an annual snapshot perspective, I find that a VAT on total expenditures would be proportional over the lifetime.  Various modifications to the VAT (zero rating necessities or giving lump sum household rebates) would increase the progressivity of the tax substantially.  However, the additional progressivity comes at the cost of substantial tax revenue.
ER  -