Understand what a value added tax (VAT) is. The current tax system has been widely criticized for its bias against savings, investments, and capital formation.
Over the past several decades, other nations have generally loweredtheir corporate tax rates, while the U.S. has kept its rate largely unchanged. The U.S. has the second highest rate among OECDcountries today. According to the OECD, "corporate income taxeshave the most negative effect on GDP per capita." Reform of theU.S. corporate tax code is essential to meeting the challenges of aglobal economy.