The differential incidence of substituting a tax on comprehensive consumption for a tax on comprehensive income is likely to be:

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Substituting a tax on comprehensive consumption for a tax on comprehensive income tends to be regressive because lower-income individuals typically spend a higher proportion of their income on consumption compared to higher-income individuals. This means that lower-income individuals would bear a relatively higher tax burden compared to higher-income individuals under a consumption tax regime.

The Differential Incidence of Substituting a Tax on Comprehensive Consumption