Agenda for Tax Reform
9 Pages Posted: 31 Oct 2010
Date Written: December 13, 2004
This article reviews various options for tax reform, emphasizing that the choice of tax rates and tax base are separate issues for achieving different things. Liberals generally support progressive rates and an income base, while conservatives generally support a flat rate on a consumption base. But there is no reason why we couldn't have progressive rates on a consumption base or a flat rate on an income base. By mixing and matching it may be possible to simultaneously achieve liberal and conservative tax reform goals.
Keywords: tax reform, VAT, consumption tax, flat tax, progressivity
JEL Classification: H2, K34
Suggested Citation: Suggested Citation