French said consumption taxes
are borne disproportionately by low and moderate-income families, who spend a higher proportion of their income than wealthier families.
In the following years, some papers analyze the question of evasion only in consumption taxes
While consumption taxes
are inherently less fair than a progressive tax on income, there are ways to moderate its unfairness, and if a consumption tax were directly linked to a positive social good--such as a VAT that pays for universal health care--the entire package, taken together, would be enormously progressive.
The consumed income tax and yield exemption tax are direct consumption taxes
, because the tax is imposed directly on the individual taxpayer.
In present value terms, this growth over time will offset the possibility that the consumption taxes
may be deferred for a long time into the future.
The same arguments that have persuaded economists that effluent taxes are the best way to curb excessive pollution suggest that consumption taxes
are the best way to curb conspicuous consumption," he writes.
The flat and consumption taxes
are criticized for regressivity.
Motley said the NRF will distribute the report to every member of Congress and may follow up with additional reports detailing the impact of consumption taxes
on other groups, such as consumers.
Some argue we need a border-adjustable tax to compete with our trading partners, which rely more heavily on national consumption taxes
A look at some alternatives The report examines four types of consumption taxes
critical to understanding election-year debates:
Think in terms of purchasing power: Because regressive consumption taxes
reduce the purchasing power of lower incomes by a higher percentage than of the wealthy, a flat income tax would create net regressivity in support of government.
There are reasons consumption taxes
may take their place.
The Clinton Administration is giving serious consideration to consumption taxes
as it formulates its future economic plan.
Everyone who took Economics 101 knows that consumption taxes
are regressive, because the poor consume a far larger proportion of their income than the rich.
The remaining third is made up of specific consumption taxes
such as excise duties.