Further Evidence Supporting The Replacement Of The Federal Tax System With A Consumption Tax Base

Abstract

This study examines the primary considerations accompanying implementation of a consumption-based federal tax system.  Additionally, theoretical and empirical (including graphs, derivates, and regression analysis) techniques are used to evaluate a consumption tax structure in the United States.  The evidence presented supports such a system; however, the public’s misperceptions concerning the impact and mechanics and the legislative body’s unwillingness to entertain a consumption tax proposal will probably further delay serious consideration for replacement of the income tax with a consumption tax.