This article is the first part of a two-part examination of the contentious issue of how state governments' provision of goods and services to the public should be taxed under a VAT.

The chances of seeing a properly valued, revenue-neutral carbon tax are about as likely as the chances of seeing a unicorn-powered spaceship. The idea would cause nothing but misery. Here are a few reasons why:

Tax Analysts' Martin A. Sullivan recently sat down with Alex Brill, a research fellow at the American Enterprise Institute, to discuss his tax reform plan, which he hopes can win bipartisan support.

Tax reform perpetually tops policymakers' lists for ways to grow the economy, but a generation has passed since the last successful effort, the Tax Reform Act of 1986. This is because of a simple political reality-it's hard. But not, I believe, impossible.

Today, American Enterprise Institute (AEI) economist and tax expert Alex Brill released a pro-growth, progressive, and practical tax reform proposal. Brill explains that six simple changes to the tax code can create an economic environment that improves our global competitiveness.

When economies are already laboring under too much spending, and are at diminishing-return levels of taxation, implementing a carbon tax would be a mistake.

The Tax Reform Act of 1986, enacted 25 years ago last Friday, showed how a tax reform that includes lower rates can change incentives in a way that grows the tax base and produces extra revenue.

The following is a summary highlighting testimony by AEI Director of Economic Policy Studies Kevin Hassett to the Joint Economic Committee at a hearing entitled "How the Taxation of Capital Affects Growth and Employment."