[Glenn Hubbard:] "We don't seem as a society to be willing to bring down spending as much as I would like to, and the corporate and personal income tax can't be raised enough to cover the difference. If we're going to have a higher level of government spending, you have to pay for it, and the most effective way to pay for it is through a tax on consumption, such as a value-added tax."

And what about the current tax reform? Oh, it's "still worth doing," he said, but the U.S. can't go on like this. "You can think of this as the last reform effort in this system." The end of the cut-reform-increase-repeat era is coming.

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