A consumption tax is a tax on the purchase of a good or service. It is known as a tax on the sale of a product or service; hence its commonly used namea sales tax. There are a number of proponents for taxing based on use rather than income. Webster's New World Finance and Investment Dictionary defines a consumption tax as "a taxation system in which taxes are assessed on how much the taxpayer spends instead of on the taxpayer's income." As you respond to your classmates, challenge the views with which you disagree and point out areas in which you have additional questions, or which could be more strongly argued.

Please respond to one of the following:

(a) Do you believe that the federal government should abolish the current income tax structure and replace it with a consumption tax structure? Why or why not?

(b) Explain the pros and cons of the current income tax structure and the consumption tax structure. Support your position with examples, providing the appropriate citations.

(c) Several U.S. states have no income tax. Make a case that the federal government could (or could not) successfully adopt a similar system of taxation.