The X Tax: The Progressive Consumption Tax America Needs?

AEI Tax Policy Outlook, 2008, No.4

6 Pages Posted: 23 Feb 2013

See all articles by Robert Carroll

Robert Carroll

Ernst & Young LLP

Alan D. Viard

American Enterprise Institute

Scott Ganz

American Enterprise Institute (AEI)

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

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

Robert Carroll

Ernst & Young LLP ( email )

One MOre London Place
1225 Connecticut Ave NW # 700
New York, NY SE1 2AF
United States

Alan D. Viard (Contact Author)

American Enterprise Institute ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States
(202) 419-5202 (Phone)
(202) 862-7177 (Fax)

Scott Ganz

American Enterprise Institute (AEI) ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
88
Abstract Views
643
Rank
520,319
PlumX Metrics