The Rise and Fall of Hope and Change

The Rise and Fall of Hope and Change

Alexis de Toqueville

The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money.
Alexis de Tocqueville

The United States Capitol Building

The United States Capitol Building

The Constitutional Convention

The Constitutional Convention

The Continental Congress

The Continental Congress

George Washington at Valley Forge

George Washington at Valley Forge

Friday, March 9, 2012

Progressive Consumption Taxation: The X Tax Revisited

From AEI:


by Alan D. Viard, Robert Carroll
American Enterprise Institute
March 05, 2012
The United States is alone among industrialized countries in having no broad-based consumption tax at the national level. Yet, economic analysis suggests that consumption taxation is superior to income taxation because it does not penalize saving and investment. The X-Tax Revisited proposes to completely replace the income tax system with a progressive consumption tax, known as the “X-tax.” It sets forth solutions to commonly perceived problems concerning the taxation of pensions and fringe benefits, business firms, financial intermediaries, international transactions, owner-occupied housing, state and local governments, and nonprofit institutions. By adopting these approaches, the United States can move to a progressive tax system that no longer penalizes saving and investment.

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