Negative Space: income tax
- Consumption vs. Income vs. Sales
-
I would love to be convinced that consumption taxes are a better idea than income taxes. But I just don’t see how politicians wouldn’t find it easier to muck up a consumption tax worse than they’ve mucked up income taxes. Is convincing Americans to switch from an income tax to a sales tax an effective use of resources?
- Income tax vs. national sales tax
-
There is no such thing as a fair tax. All we can do is try for the simplest, most unobstructive tax we can find.
- Is it better to tax incomes or purchases?
-
Is it better in a democratic republic for the national government to tax incomes, with an income tax, or to tax purchases, with a sales tax?
More Information
- Tax Oped—full version
-
“Second, the government should tax consumption, not wages, income or wealth. When the government taxes savings, investment income, wealth or inheritance, it reduces the incentive to save, invest and build companies rather than enjoy consumption immediately. Taxes on capital gains discourage people from moving or reallocating capital toward their most productive uses.”
