This beautifully articulates the merits of consumption taxation and how “consumption taxation” doesn’t need to come as a sales tax or VAT.
I just added some information from this essay to my upcoming piece on consumption taxation. I arrived at the conclusion that VAT is likely the simplest mechanism but I make mention of DBCFT as an alternative.
DBCFT is likely more viable because it avoids regressivity…well…at least the perception of regressivity.
I can see DBCF tax as substitute for business income taxation. But I don't see any point in business income tax itself. I say tax personal consumption progressively (~ income tax with unlimited 401K deductions), + a VAT for "horizontal" social insurance transfers, + taxation of net CO@ emissions with total revenue to make deficits = Σ(expenditures with NPV>0).
A wonderful piece Jason. I subscribed.
This beautifully articulates the merits of consumption taxation and how “consumption taxation” doesn’t need to come as a sales tax or VAT.
I just added some information from this essay to my upcoming piece on consumption taxation. I arrived at the conclusion that VAT is likely the simplest mechanism but I make mention of DBCFT as an alternative.
DBCFT is likely more viable because it avoids regressivity…well…at least the perception of regressivity.
I can see DBCF tax as substitute for business income taxation. But I don't see any point in business income tax itself. I say tax personal consumption progressively (~ income tax with unlimited 401K deductions), + a VAT for "horizontal" social insurance transfers, + taxation of net CO@ emissions with total revenue to make deficits = Σ(expenditures with NPV>0).