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" ... The Graetz plan was a VAT proposal that tax simplification advocates could rally behind. It checked all the boxes that were relevant to the era in which the book was published. The plan was pro-growth, revenue neutral, and distributionally neutral. It adhered to observable trends in international competitiveness. ... "
" ... “If they’re going to make reform distributionally neutral and they’re going to lower the top rate, there’s no way to get around" eliminating the lower rate for capital gains, agrees Eric Toder, a co-director of Tax Policy Center, who has run many a distributional table. Note that a special rate for capital gains was eliminated by the 1986 Reagan tax reform and is axed in the proposal from Obama’s bipartisan deficit commission. (The Gang of Six is silent on the issue. But m0st Republicans –and some Democrats—believe strongly in a a lower rate for capital gains, so that could be a big impediment to reform.) ... "