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He can't tax consumption.
He adds, there's just one tax: consumption.
"I think it's quite logical to tax consumption".
It would make sense, therefore, to find ways to tax consumption more and income less.
And, as Robert Frank, of Cornell, has suggested, the I.R.S. could tax consumption above a certain annual amount indirectly.
One guiding principle is that it is better to tax consumption than income, because taxing what is spent rather than what is earned does less damage to incentives to save.
Similar(46)
Since all agents must select their bundle along the unique (net of tax) consumption-expenditure budget line, the highest level of consumption must be defined by someone who has the preferences that show the lowest concern for health (see the proof of Theorem 1.ii).
Although a flat tax won't be adopted, taxing consumption is actually a good idea.
Compared with other countries, America taxes consumption too little and income too much (see article).
Taxing consumption has the potential to lift economic growth by encouraging more savings and investment.
They contend that taxing consumption is better than taxing income, and a value-added tax does exactly that.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com