Under a comprehensive consumption tax, liability for payment of taxes on the amount of income saved in any year is deferred rather than eliminated.

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Under a comprehensive consumption tax, individuals are only taxed on their consumption, not on their income. However, if an individual saves income instead of spending it, they will not be taxed on that income in the current year, but they will be liable for taxes when they eventually spend that saved income in the future. Therefore, liability for payment of taxes on the amount of income saved in any year is deferred, rather than eliminated.

Under a Comprehensive Consumption Tax, Liability for Payment of Taxes