A Fresh Look at the VAT

The purpose of this paper is to identify and examine some of the key VAT policy issues that have arisen in the implementation of the tax. Specifically, the paper examines four issues as examples of the specific inefficiencies that arise in actual practice with VATs. The first section examines the effect of registration thresholds, normally allowed to lessen administrative burdens, as an example of structural inefficiencies. The second section examines the tariff effects arising from administration of the VAT at border. The third section considers application of the VAT on financial services as an example of exemptions from the tax. Finally, the problem of distributing the revenues of a destination VAT levied at the subnational level is discussed.Working Paper Number 04-38

Financial regulation in the post-crisis environment

The Chicago Fed’s 46th annual Conference on Bank Structure and Competition, which took place May 5–7, 2010, focused on the future of the financial services industry in light of the recent financial crisis and forthcoming industry reforms.Financial crises ; Bank supervision

Policy Reform in the Tobacco Industry: Producers Adapt to a Changing Market

The Fair and Equitable Tobacco Reform Act of 2004 eliminated tobacco quotas and tobacco price supports and allowed producers to plant any amount or type of tobacco regardless of geographic location. The authors found that flue-cured tobacco producers made greater adjustments to their operations after the buyout than did burley tobacco producers. Flue-cured tobacco producers were more likely to increase tobacco acres per farm, pushing up the tobacco acreage per farm at a faster rate compared with burley tobacco producers. Flue-cured producers also were more likely to invest in their tobacco enterprises and invested more per farm after 2004. As a result of increased acreage, tobacco operations became more sensitive to changes in labor costs. With over 75 percent of tobacco farms using hired or contract labor in 2008, the availability and cost of workers have become increasingly important to tobacco producers. This report is based on data collected from the tobacco version of the 2008 Agricultural Resource Management Survey (ARMS), which focused on U.S. producers of burley and flue-cure tobacco in 2008 and how their tobacco operations have changed since 2000 and 2004.Tobacco, structural change, farm adjustments, adaptations, Agricultural Resources Management Survey (ARMS) Acknowledgments, Agricultural and Food Policy, Crop Production/Industries, Farm Management,

Quantum Teleportation of Optical Quantum Gates

We show that a universal set of gates for quantum computation with optics can be quantum teleported through the use of EPR entangled states, homodyne detection, and linear optics and squeezing operations conditioned on measurement outcomes. This scheme may be used for fault-tolerant quantum computation in any optical scheme (qubit or continuous variable). The teleportation of nondeterministic nonlinear gates employed in linear optics quantum computation is discussed.Comment: 4 pages, 1 figure, published versio