Sunday, March 06, 2005

Consumption Tax

I was happy to hear that Alan Greenspan
the Federal Reserve chairman, cautiously endorsed a shift in the nation's tax system on Thursday from one that primarily taxes what people earn to one that taxes what they spend.
Not that I think Steve Forbes is right about everything, but I tend to agree with the concept of a tax on usage rather than earnings.

Author's note: A bit more research showed me Steve's proposal was primarily for a flat tax (17% on more than $13k), rather than a consumption tax, though the two plans are often tied together.

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