Economic Analysis of Social Issues 1st Edition by Alan Grant

تمرين 9

There is a built-in irony in government's use of the income tax to generate revenues: Taxing peoples' earnings discourages work. As a result, several economists have proposed eliminating the income tax and replacing it with a consumption tax-essentially, a national sales tax-sufficiently large to generate the same revenue for die government. Discuss some pros and cons of this proposal.