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:
“Daily life is governed by an economic system in which the production and consumption of insults tends to balance out.”
—Raoul Vaneigem (b. 1934)
“But the tax collector, standing far off, would not even look up to heaven, but was beating his breast and saying, ‘God, be merciful to me, a sinner!’”
—Bible: New Testament, Luke 18:13.