A consumption tax is a tax on spending on goods and services. The tax base of such a tax is the money spent on consumption. Consumption taxes are usually indirect, such as a sales tax or a value added tax. However, a consumption tax can also be structured as a form of direct, personal taxation, such as the Hall–Rabushka flat tax.
Read more about Consumption Tax: History, Savings Effect, Practical Considerations, Economic Impact
Famous quotes containing the words consumption and/or tax:
“There is held to be no surer test of civilisation than the increase per head of the consumption of alcohol and tobacco. Yet alcohol and tobacco are recognisable poisons, so that their consumption has only to be carried far enough to destroy civilisation altogether.”
—Havelock Ellis (1859–1939)
“People buy their necessities in shops and have to pay dearly for them because they have to assist in paying for what is also on sale there but only rarely finds purchasers: the luxury and amusement goods. So it is that luxury continually imposes a tax on the simple people who have to do without it.”
—Friedrich Nietzsche (1844–1900)