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We like income, so why tax it?’, they ask, but then go on to suggest a consumption tax. People don’t like income by itself. People like income because it allows them to purchase and consume things! We like consumption, so why tax it?
There are legitimate reasons why we might favour a consumption tax over an income tax, and vice versa. Would have been nice to see those reasons outlined as opposed to some silly ‘consumption is bad’ statement.
A saver by definition has a bunch of earned income that they can dissave (to get consumption) in the future. A borrower has to earn more income in the future to pay for past consumption.
By lifting income taxes and cutting consumption taxes, you are then lifting the average tax rate paid by people that have saved up until that point (as they aim to consume more than they aim to earn) and push down the average tax rate for people who have borrowed (as they have to target earning more than they will spend on consumption).
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