Tax Consumption, Not Production, to Fund the Government

For years, the economic establishment has begged the United States to do one thing: tax consumption, not production . Consumption taxes don’t penalize saving. They don’t discourage work. They don’t tax the income you might reinvest in a business or use to raise a family. If you’re designing a tax system from scratch, you start with consumption.

That’s not just conservative instinct — it’s the view of the The Organisation for Economic Co-operation and Development (OECD), which found that consumption taxes are among the least harmful to economic growth , ranking far ahead of income or corporate taxes in terms of efficiency. It’s also the consensus of serious academic work, including the influential case laid out by economists Jose

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