Download Full Text (1.2 MB)
Occasional Paper 103
Center for the Study of American Business (CSAB), Washington University in St. Louis, St. Louis, MO 63130
The governments of most industrialized nations, especially in the European Community, use consumption taxes far more than the United States. Yet a low-saving, slow-growing economy such as the United States would benefit greatly from shifting the national revenue system from taxing income to taxing consumption. That change would provide a powerful incentive to increase the nation's saving and investment and, therefore, economic growth and living standards. This report examines the pros and cons of consumption taxation and also analyzes the major policy alternatives to structuring a new tax of that type.
Consumption Tax, Savings, Tax Code, Consumption, Value-Added Tax
Economics | Public Policy
Weidenbaum, Murray L., "The Case for Taxing Consumption", Occasional Paper 103, 1992, doi:10.7936/K7862DN1.
Murray Weidenbaum Publications, http://openscholarship.wustl.edu/mlw_papers/119.