Ideas tagged with consumption tax

Partial replacement of the FairTax prebate by a wage subsidy

The proposed FairTax Act (H.R.25/S.155) would replace most U.S. federal taxes, including payroll tax and all forms of income tax, with a retail sales tax. To compensate for the rise in prices of necessities, the legislation provides for an annual "prebate" of a fixed amount per legally resident ...

By Gavin Putland

Equitable methods of abolishing PAYG personal income tax

It is argued that the replacement of pay-as-you-go personal income tax ("PAYG tax") by something more efficient (e.g. a land tax or consumption tax) would offend intergenerational equity because retirees no longer pay PAYG tax, and would offend vertical equity because higher-income earners would...

By Gavin Putland