>But this could all be academic if taxation of corporations
>at source (i.e., the U.s. corporate income tax) is junked
>altogether and replaced with the VAT.
So Max, or anyone, what's your sense of the "incidence" of a corporate income tax - does capital pay it, or is it passed along to final consumers? My guess is that they wouldn't spend all that money on lobbyists if they could fully pass it along, but the issue is still controversial in the economics literature, no?
Doug