Assuming that progressive taxation is desirable,a consumption tax calculated by subtracting saving from income would be preferable to a general sales-based consumption tax.

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A consumption tax calculated by subtracting saving from income, also known as a personal expenditure tax, would be preferable to a general sales-based consumption tax because it would be more progressive. This is because those who save more of their income would be taxed less than those who spend more of their income, which aligns with progressive taxation principles of taxing individuals based on their ability to pay. In contrast, a sales-based consumption tax would be regressive, as lower-income individuals would end up paying a higher percentage of their income in taxes than higher-income individuals.

Assuming That Progressive Taxation Is Desirable,a Consumption Tax Calculated by Subtracting