The second type of tax reform would replace or supplement the income tax with a broad tax on consumption.
Compared with the Americans, the Europeans place far more of their tax burden on consumption than income.
They would ensure that millions of people in effect paid tax only on their consumption.
This is happening at the same time that some red states notably Kansas and Louisiana are looking at lowering income tax rates by shifting to rely more on consumption or sales tax revenues.
While such a breakthrough may come eventually, a tax on gasoline that reduces consumption is a far more dependable way to reduce transportation externalities.
In contrast, the average hours of work for American and Japanese workers is nearly identical due to comparable tax rates on earnings and consumption.
To replace the loss of revenues, Huckabee advocates a consumption tax on goods and services that includes a monthly "prebate, " designed to offset taxes on necessities.
In January, Rob Woodall (R-GA) introduced a bill in Congress to repeal income, employment and estate and gift taxes and instead impose a 23 percent sales tax on the use or consumption of all goods, properties and services.
Most suggest some variety of a consumption tax, where the burden of taxation falls on consumption rather than on income.
In the event, they have settled for banning sales of drink for less than the tax paid on it (alcohol duty, plus VAT, a consumption tax).
Other approaches are substitute taxes, possibly including a consumption tax or a tax on energy usage.
Obama ask Noda about prospects for passage of the consumption tax increase, debate on which begins in the Diet next week.
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Obviously, funding the basic pension through the broad-based consumption tax would lower the burden on active workers and employing firms.
John L. Mikesell, an Indiana University public finance professor, says that since the sales tax is meant to tax personal consumption, it should be imposed on services bought by consumers and not on those purchased by businesses.
Reform-minded upper-house LDP politicians like Mr Hayashi say they would be prepared to support the DPJ on issues such as the consumption tax if it scraps some of its more reckless public-spending proposals, such as universal child allowances.
For one, much as a flat tax would inspire lobbyists looking for deductions on what would be a simplified tax, so would the same occur with a consumption levy.
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That's where some sort of consumption tax would come in on carbon or, more likely, on everything.
On the economy, the differences among candidates turn on whether a rise in the consumption tax is needed to plug a gaping budget deficit and bring down the high levels of debt incurred when Japan tried to spend its way out of slump in the 1990s.
The future will be richer the less we place the tax burden upon capital and the more we place it on consumption and property.
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Over and above this we get to the second point which is that on pure efficiency grounds we would rather tax property and consumption, possibly even incomes, rather than capital returns.
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Cain wants to simplify and flatten the tax code, replacing taxes on income and investment with taxes on consumption?
Like other consumption taxes, a carbon tax would fall disproportionately on low-income families.
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As mentioned earlier, be it a flat tax or a consumption levy, both would be huge improvements on what we have at the moment.
FORBES: A Flat Tax Would Be Fine, A Consumption Tax True Perfection
The president should learn from China to shift some of the tax burden from lower income classes to wealthier people by increasing taxes on consumption rather than, as he has tried to do, on income.
While with income taxes we pay regardless, if a consumption tax were implemented Americans could put the federal government on a diet at the same time that economic uncertainty is forcing them to tighten their own belts.
FORBES: A Flat Tax Would Be Fine, A Consumption Tax True Perfection
That is, if the mayor really wanted to limit consumption, he would propose a soda tax that is on a per ounce basis and the revenue could be used in programs to educate people about healthy eating.
Noda has also signaled that he will honor the previously-reached agreement with the opposition parties on restructuring government finances and putting welfare state programs on a sustainable financing footing, specifically raising the consumption tax from the current five percent to 10 percent by yearend 2015.
On balance, considering effects on the economy, the main source must be the consumption tax.
Probably not, so one too often unspoken of positive of a consumption tax is that it would put an obese federal government on a diet.
FORBES: A Flat Tax Would Be Fine, A Consumption Tax True Perfection
Under a consumption tax, the burden of taxation would probably fall more heavily on poorer Americans, since most capital, whose returns would not be taxed, is held by the rich.
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