The Rise and Fall of the Consumption Tax: A Historical Perspective

10 Pages Posted: 18 Nov 2014 Last revised: 29 Apr 2015

Date Written: November 19, 2014

Abstract

This article will survey the great consumption vs. income tax debate from a historical perspective. The focus here is not on which tax base is better, but rather on how this debate evolved over time inside and outside legal academia. As we shall see, there was one point in which the consumption tax came close to being adopted - in 2005, when it was one of two alternatives recommended by the Bush tax reform panel. But the moment passed, and it seems unlikely to return.

Keywords: tax reform, consumption tax

JEL Classification: H26

Suggested Citation

Avi-Yonah, Reuven S., The Rise and Fall of the Consumption Tax: A Historical Perspective (November 19, 2014). U of Michigan Law & Econ Research Paper No. 14-025; U of Michigan Public Law Research Paper No. 435. Available at SSRN: https://ssrn.com/abstract=2523941 or http://dx.doi.org/10.2139/ssrn.2523941

Reuven S. Avi-Yonah (Contact Author)

University of Michigan Law School ( email )

625 South State Street
Ann Arbor, MI 48109-1215
United States
734-647-4033 (Phone)

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