These maxims are widely accepted and basing the criteria on them ensures that the comparison is made on a sound theoretical foundation. Slemrod and Bakija then relate the maxims to practical examples, with a useful discussion of the controversies surrounding tax reform. Chapters six through eight discuss proposals to replace the current tax system. In these chapters, the authors incorporate historical international experiences with various tax systems. They identify the proposed system and how it stands with reference to the four maxims.
Single rate refers to one tax rate for all taxpayers .
Consumption base refers to taxing the value of what people consume. Using these three dimensions, they discuss each reform proposal, to what degree it applies the three flatness dimensions of fundamental reform, and how it would expect to rate with the earlier developed tax criteria. Slemrod and Bakija raise the issue of transition from one system to another and describe the likely winners and losers. They do a very good job of discussing how VAT is implemented in different nations. Lastly, they examine the income tax for possible improvements and discuss hybrid systems combining both income and consumption taxes.