Lawmakers and experts who support fundamental tax reform are eyeing a consumption-tax plan being worked out by the Bush administration that they believe if implemented would make the U.S. tax code much simpler to follow and be a boon to economic growth.
The administration's plan, first reported by the Washington Post last month, calls for shifting the tax system away from taxing income and targeting consumption instead. The paper reported that administration tax policy wonks within the Treasury Department are still working out the details, and that their progress has largely been kept under wraps.
Officially, White House tax-policy experts have spent the past year working on reform options to present to the president, but "economists and tax lobbyists close to the effort believe that Treasury Secretary Paul H. O'Neill is serious about elevating tax reform on Washington's agenda," said the...
A consumption based tax makes great sense! Would rather be taxed on what I spend than what I make (which is hopefully more). This approach would require much less paper, accounting, and hassle. Bet we will demand cheaper government when it's price is counted at every sale!!