Progressive Consumption Taxation carefully lays out the rationale for adopting a progressive consumption tax system in the United States and shows how such a system can be adopted. Carroll and Viard provide the motivating ‘big picture’ arguments but also tackle the many thorny details that confront this tax reform, including the appropriate treatment of financial intermediaries, international transactions, and transition from the income tax. The book is accessible to those with a policy interest, but it will also enlighten tax experts.
(Alan J. Auerbach, University of California, Berkeley)Although consumption-type taxes like the Flat Tax and FairTax are beloved by GOP presidential candidates, they have never won political traction because they are widely perceived as unfair. Bob Carroll and Alan Viard take fairness considerations seriously and explain how a modern version of the X Tax could address them while preserving the efficiency advantages of a consumption tax. The book provides a comprehensive and accessible analysis of progressive consumption taxation and should be on the reading list of anyone interested in fundamental tax reform.
(Leonard E. Burman, Syracuse University and the Urban Institute)
About the Author
Alan D. Viard is a resident scholar at the American Enterprise Institute.
Robert Carroll is vice president for economic policy at the Tax Foundation and co-director of the Center for Public Finance and Research at American University.