This paper examines the role of administrative factors in tax reform. How difficult is it for taxpayers to comply with and understand the current tax system? How much does operating the system cost? How well are taxes enforced? How would modifying the income tax or starting over with a new...

To raise revenue in a progressive, efficient, and administrable manner, this chapter proposes a new national consumption tax: a broad-based credit-invoice value-added tax (VAT). The proposal comes with several qualifications: the VAT should complement, not substitute for, new direct taxes on the...