Henry Gomersall says:
July 30 2022 at 8:22 am
I’ve been advocating for a while for a steeply progressive consumption tax to replace income taxes. Essentially you are taxed on what you spend each year, but scaled heavily at the top end (at the bottom end, it would look much the same as now). It would have two effects – 1. Directly addresses the primary problem of wealth inequality, which is spend inequality and 2. Ties tax paid to consumption in the real economy rather than indirectly. It would probably require a wealth tax or more progressive inheritance tax to help prevent dynasties.
Richard Murphy says:
July 30 2022 at 4:01 pm
I advocated this in The Joy of Tax
The progressive consumption tax leaves wealth, income from wealth, entirely tax free. And only taxes that portion of income – from whatever source – is spent upon consumption. The idea that Spud would recommend this is absurd of course.