Wednesday, August 16, 2006

Cogent Argument for Consumption Tax


Kudos to the Institute for SocioEconomic Studies for taking out a half-page ad in the NY Times (not the paper most well-known for being accepting of classical liberal economic viewpoints) arguing for a consumption tax to replace the income tax.

The advert was well-worded, precise, and dogma-free. For example, did you know USA is only industrial country with a negative savings rate? And that a consumption tax (instead of income tax) would reduce the costs of goods manufactored in the US by 20 to 30 %? This would, as the ad says, help the poor and the middle-class, create jobs, and help get us out of debt.