March 23, 2006

The Case for a Consumption Tax

David Weisbach:
The debate over the choice between income and consumption taxation has been ongoing since the beginning of the modern economy, seemingly without end. Those who argue for an income tax usually claim that taxing capital income is central to a fair tax system because those with capital income appear to have a higher ability to pay. Moreover, reducing taxes on investment income would seem to reduce the progressivity of our tax system, a result that is particularly worrisome at a time of growing inequality.
Posted by James Zellmer at March 23, 2006 6:56 AM | Subscribe to this site via RSS:
Posted to Taxes