Overview
Discuss how the current personal income tax system could be restructured to function as a consumption-based tax. In your response, evaluate the economic rationale behind taxing consumption rather than income, including the impact on savings, labor income, and borrowing. Do you agree with the view that consumption is a better measure of taxpaying ability than income? Analyze how comprehensive consumption taxes differ from retail sales taxes in practice, and consider the consequences of excluding certain items from the consumption tax base.4 pages long, no AI no plagiarism