Talk:Consumption tax

message: That's a wrong statement, Consumption tax is neutral in intertemporal consumption decision, here is why:
Assuming 20% VAT, here are NPVs
To consume today, you pay 0,20(1) for every dollars spent.
To consume in a year you pay 0,20(1)(1+i)/(1+i)=0,20(1)
So it's the same.
With income tax that's different, because interest will be taxed:
If you consume today, you pay 0,20(1)
If you consume tomorrow you pay [0,20(1)(1+i)+1(i)0,2]/(1+i) that is > than today consumption.
So it is not correct to state that consumption tax encourage savings, is income tax that discourage savings.  — Preceding unsigned comment added by 2.229.153.38 (talk) 11:59, 27 June 2015 (UTC)
thread_title: Consumption tax does not incentive savings

message: It really doesn't make any sense as a level 2 header I don't know why you people keep reverting it back--152.163.100.198 01:48, 7 February 2006 (UTC)
thread_title: level 3 header

message: It's generally not considered polite to blank other people's comments--152.163.100.198 01:49, 7 February 2006 (UTC)
thread_title: [http://en.wikipedia.org/w/index.php?title=Talk%3AConsumption_tax&diff=38551896&oldid=38551534 not good, not good]

message: I suppose, that if we are talking about consumption tax the theoretical point of view, than as an example we have to mention not only American version, but also Value added taxes and Excise taxes.
:I agree. Morphh  (talk) 15:01, 03 April 2007 (UTC)
replies: text: Yes - please add if you have information. Morphh  (talk) 15:43, 12 May 2007 (UTC)
thread_title:  VAT ? 

message: I commend the writers on a well written page. I offer my comments here instead of changing the page itself because I don't think I have the mandate. The section on housing is pretty complicated and seeks to suggest that the taxation on rent/mortgages must be inherently complicated. This isn't true. A one-time tax on the amount of sale price (whatever the tax rate) seems the most intuitive approach. After that, rent could either be excluded or housing would be double taxed. Nothing unnatural or complicated. Also I think  the article under presents the idea that a tax on consumption reduces administrative burden and effortlessly finds tax revenue from undocumented immigrants, launderers, black market participants, evaders, etc. --Gtg207u 18:27, 2 December 2007 (UTC)
thread_title: Couple of thoughts

message: ----
The poorer would be less likely to consume, decreasing business.  Additionally, the cost of 'feeling' like they are living a better life would grow much higher, decreasing their sense of their standard of living.  Both these would decrease investments.  Instead of people reaching higher they would be shooting lower.  With a decrease in aspiration and business, the standard of living would actually drop.
~ NantucketNoon (talk) 08:29, 16 November 2008 (UTC)
replies: text: That would completely depend on the tax and the structure and what type of tax system it is offsetting if any.  Every form of taxation has effects to economic growth in one way or another.  I would say that in general you are correct in that all taxes decrease standard of living, spending, and investment.  However, suggesting in general that consumption taxes do so more than other forms of taxes seems contradictory to research and empirical evidence but again that would be dependent on the tax system.  Morphh  (talk) 1:17, 17 November 2008 (UTC)
thread_title:  Comment 

message: ----
"taxing consumption instead of income should encourage both work and capital formation, which will increase economic growth, while discouraging consumption"
Because the real universe involves supply and demand, anything that discourages consumption decreases economic growth, as much as anything that discourages investment.  And taxing consumption does not, in some normative sense, encourage work, because it reduces the potential to use the fruits of labor.  If prices increase, do people work more?  Inflationary history certainly doesn't suggest it.
"Also, a consumption tax could utilize progressive rates in order to maintain "fairness." ... The rate structure could look like the current bracket system, or a new bracket system could be implemented."
An encyclopedic entry on something very real and widespread should not spend time elaborating imaginary structures, especially one that looks like a house of cards.  The process of making consumption taxes "as progressive as wanted" would require tracking
somone's purchasing activity as well as income and wealth, in real time.  Credit card companies can't adjust rates on the fly according to changing credit scores, which themselves change ponderously slowly.  To expect state or federal governments to pull off this trick is science-fiction.  — Preceding unsigned comment added by Hadescorpus (talk • contribs) 10:31, 19 November 2011 (UTC)
thread_title:  Supply Side Bias & Fantasy 

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thread_title:  External links modified 

message: There is no Consumption Tax (as such), VAT and GST for example are tax for end consumer unless you are a business, so a business "consumes" without being subject to this tax. To me the whole article is a misnomer and a kind of miss-step i.e. not at all true, and based on a page start that read "and they're essentially the same thing" which is rubbish, also, in the lead it says "However, a consumption tax can also be structured as a form of direct, personal taxation, such as the Hall–Rabushka flat tax." more rubbish I am afraid. If any State at all has something called consumption tax, add it here and reference it. One or two high value individuals calling for some kind of consumption tax is not consumption tax. Get what you need off of this article and make it a redirect to VAT.121.99.108.78 (talk) 07:27, 27 January 2020 (UTC)
thread_title:  Not sure about this at all