A consumption tax is a tax on spending on goods and services. The tax base of such a tax is the money spent on consumption. Consumption taxes are usually indirect, such as a sales tax or a value added tax. However, a consumption tax can also be structured as a form of direct, personal taxation, such as the Hall–Rabushka flat tax.
Read more about Consumption Tax: History, Savings Effect, Practical Considerations, Economic Impact
Famous quotes containing the words consumption and/or tax:
“To expect to increase prices and then to maintain them at a higher level by means of a plan which must of necessity increase production while decreasing consumption is to fly in the face of an economic law as well established as any law of nature.”
—Calvin Coolidge (1872–1933)
“To tax and to please, no more than to love and to be wise, is not given to men.”
—Edmund Burke (1729–1797)