The X Tax: The Progressive Consumption Tax America Needs?
AEI Tax Policy Outlook, 2008, No.4
6 Pages Posted: 23 Feb 2013
Date Written: December 1, 2008
Abstract
Good tax policy should be pro-growth, simple, and fair. An income tax, unlike a consumption tax, penalizes saving, which undermines economic growth and introduces complexity. An income tax is often thought to be fairer than a consumption tax, however, because it taxes saving, which is disproportionately done by higher-income individuals. In reality, however, a consumption tax can be designed to be as progressive as the current income tax. The Bradford X tax offers an attractive, if little-known, form of progressive consumption taxation.
Suggested Citation: Suggested Citation
Carroll, Robert and Viard, Alan D. and Ganz, Scott, The X Tax: The Progressive Consumption Tax America Needs? (December 1, 2008). AEI Tax Policy Outlook, 2008, No.4, Available at SSRN: https://ssrn.com/abstract=2221917
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