The income tax only taxed the Rockefellers, the Morgans and the Vanderbilts. It was aimed at the top 4 percent, and the top rate then in 1913, was 7 percent. Woodrow Wilson had a big ceremony and said, I'm delighted to be president at the creation of this popular new tax.

It used to be that we taxed property - zapped farmers basically. And there were very rich people who didn't pay that much tax. So in 1913, they put in the income tax. It was incredibly popular. The tax we love to hate today.

We have the most expensive compliance system in the world. The IRS brags that they spend 35 cents for every $100 they collect. They're very efficient collectors. And the reason is they stick the real cost on you and me.

There's a tradeoff. Yeah, I lose the deduction that I really like, but my tax rate is going to go down, and I don't have to fill out that form anymore. It's much simpler, rates are lower, and that tradeoff has worked in many countries. Many countries have just cleaned house of all those exemptions in order to provide lower rates, and people buy it.

Professor Eric Zolt of UCLA, said to me, The VAT is such a good idea, mark my words, within five years, the U.S. will have a VAT. Then he said, Of course, I've been saying that for 20 years.

When it comes to taxation, Americans are still banging out letters on a typewriter and dropping them in the mail box while everybody else has moved on to texting and Instagram.

In the United States, unlike any other advanced democracy, money really talks. Our Supreme Court has said that spending money on politicians is a form of free speech. No other court has said that.

The Value-Added Tax, a sales tax that applies at every level of business transactions, is an easy tax for governments to collect, and a hard tax to evade.

Relative to the world's other advance democracies, Americans get off easy on tax day. Of the 35 richest countries, the U.S. ranks 32nd in total tax burden.

I really like the idea of consumption tax, and most countries have a pretty serious consumption tax. It's called a value-added tax or a goods and services tax ... It's a sales tax. It doesn't tax labor, it doesn't tax savings or investment - it taxes consumption.

France, they're the world champion at soaking the rich on taxes. And at one point, they had what they called a hyper tax, 75 percent, and Gérard Depardieu and many others left the country.

We cut tax exemptions in 1986, it was the most admired tax reform in U.S. history. Congress and the president worked together then to eliminate scores of loopholes and exemptions and deductions this made taxes much simpler, and allowed a major cut in tax rates.

The higher the rate, the more interest there is in avoiding the tax. Either you move or you shift your profits overseas, as American corporations have proven very good at doing.