Scoping Out the Uncertain Simplification (Complication?) Effects of VATs, BATs and Consumed Income Taxes

Of the many things we do not know about a national, broad-based consumption tax, this article addresses only one of the important uncertainties: the impact of a consumption tax on the overall intricacy of the federal revenue system. More specifically, this article examines some important issues regarding the effects on tax system complexity of the three principal candidates for a national consumption tax-the European-style, credit method value added tax (VAT), the subtraction method VAT, and the consumed income tax.