Explain why many economists argue that an income tax penalizes savers but a consumption tax would not.

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Explain why many economists argue that an income tax penalizes savers but a consumption tax would not. In what sense can consumption be regarded as a better index of the ability to pay taxes than income?

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Public Finance A Contemporary Application Of Theory To Policy

ISBN: 9780538754460

10th Edition

Authors: David N Hyman

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Question Posted: Aug 15, 2023 02:30 PM

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Explain why many economists argue that an income tax penalizes savers but a consumption tax would not.

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Many economists argue that an income tax penalizes savers while a consumption tax does not due to the different treatment of saving and spending in ea...View the full answer

Public Finance A Contemporary Application Of Theory To Policy

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