Is America’s Only VAT Tax Working?

May 23, 2005

While it’s common knowledge that the U.S. is the only wealthy country without a value-added tax (VAT), a lesser-known fact is that Michigan operates the only state-level VAT in the United States, known as the “Single Business Tax” (SBT).

To many economists VATs are appealing tax systems because they’re typically more efficient in some ways than income tax systems. So is Michigan’s SBT working?

To find out, check out our new “Fiscal Fact” analyzing a proposal in Michigan to reform the Single Business Tax—and what it does to Michigan’s ranking in our State Business Tax Climate Index. Read the full analysis here.


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