Examines implementation issues related to a flat expenditure tax and VAT. Considers complexity, transition arrangements, international issues and federal-state fiscal harmony, and concludes that neither of these reform measures would lead to a simplification of the tax system compared to the...

Canada has operated both a federal value–added tax (the GST) and two variants of provincial VATs for the last 15 years. In addition, several provinces have continued to operate retail sales taxes similar to those in most US states. A brief review of experience around the world with...