This short paper provides a summary of a Special Report on a modified version of the comprehensive business income tax, or CBIT, scheduled to appear in Tax Notes on August 26, 2013. The Special Report advocates adoption of a CBIT similar to the one Treasury proposed in 1992. The main difference is the proposed addition of a tax on distributions to high-bracket taxpayers, together with the availability of a deduction against the distribution tax for amounts promptly reinvested. The net effect is consumption tax treatment of the tax, if any, on distributions.
David M. Hasen,
CBIT 2.0 -- Executive Summary
Available at: http://digitalcommons.law.scu.edu/facpubs/792