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Article: Is it time for a consumption tax?(A New Agenda - Old Constraints)
- Article from:
- National Tax Journal
- Article date:
- September 1, 1995
- Author:
CopyrightCOPYRIGHT 1995 National Tax Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The drumbeat in America is rolling that radical surgery must be done on the U.S. tax system. We are told that the current U.S. tax system is "irretrievably broken," that "it can't be fixed," and that nothing short of a complete overhaul of this system is needed. One of the proposed solutions to this dilemma is to toss out the income tax and replace it with a consumption tax. It is alleged that this solution will not only eliminate the hopeless complexity of the current system, but by changing the system to promote and underwrite saving and investment, the performance of the U.S. economy will substantially increase. Proponents of a consumption tax also argue that it will ...