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What are the merits and risks of other tax-based reforms

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Current debates about ideas to revive the economy generally fall into alignment with either classical or Keynesian economic theory. Some suggest that our ailing economy is a strong incentive for tax reform.

(1) Should we have a flat tax? Why or why not?

(2) What are the merits and risks of other tax-based reforms? Please assess at least one additional reform. Examples include, but are not limited to: a national sales tax, value-added taxes (VAT), eliminating a variety of deductions or credits.

Reference no: EM131168896

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