Destination based cash flow tax:
This explanation published by theChristian Science Monitor, (a reputable newspaper), is inadequate.Can any of the forum’s members provide a link to a superior explanation of DBCFT?
“(2) The DBCFT is essentially avalue-added tax (VAT), but with a deduction for wages. Every advanced country except theU.S. has a VAT alongside a corporate income tax. The U.S. would in effectbe replacing the corporate income tax with a modified VAT. A VAT taxesconsumption, not income – it has the same effects as a national retail salestax, but works better administratively”.
Double dipping? Enterprises operating within the USA deducttheir normal domestic expenditures for labor costs (from what if corporateincome taxes are repealed)?
How would the USA enforce a tax upon moneypaid to recipients beyond our borders?Isn’tthat particularly difficult when the money is passed among globally operatingsingle enterprises, or enterprises associated with each other such as subsidiaryenterprises or otherwise independent enterprises that are associated by innumerable manners of other agreements?
What I’ve read thus far implies a proposal that’s only applicable to USA’s international transactions; I consider that tobe less rather than more feasible than USA adopting a general value added tax,(i.e. VAT).