March 4, 2005

Greenspan Backs a Consumption Tax

Edmund L. Andrews:

"Many economists believe that a consumption tax would be best from the perspective of promoting economic growth - particularly if one were designing a system from scratch - because a consumption tax is likely to favor saving and capital formation," Mr. Greenspan said.

But the Fed chairman warned that shifting to a new system would raise difficult "transition issues," and he cautioned against "going for purity" in any kind of tax overhaul.

Posted by James Zellmer at March 4, 2005 6:41 AM | Subscribe to this site via RSS:
Posted to Taxes