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Progressive Consumption Taxation: The X-Tax Revisited
     

Progressive Consumption Taxation: The X-Tax Revisited

by Alan D. Viard, Robert Carroll
 

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Alone among developed countries, the United States has no broad-based national consumption tax. Yet, economic analysis suggests that consumption taxation is superior to income taxation because it does not penalize saving and investment. The authors conclude that the U.S. income tax system should be completely replaced by a progressive consumption tax.

The authors

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