Under a consumption tax,only current expenditures are taxed.

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A consumption tax is a tax on goods and services consumed or utilized by individuals or businesses. It is based on the idea that people should be taxed on what they take out of the economy, rather than what they contribute to it. Therefore, only current expenditures (i.e. purchases of goods and services) are subject to the tax. This distinguishes consumption taxes from income taxes, which can also tax savings and investments.

Under a Consumption Tax,only Current Expenditures Are Taxed