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| SOURCE: https://www.freshbooks.com |
Would you be happy with paying less taxes and helping the environment? Well both are possible with a consumption tax. In the article Consumption Tax vs. Income Tax: Why More States Are Opting to Collect Consumption Taxes Only written by Amanda Grossman, an active writer on the website, How Money Walks. How Money Talks is a website that debates economic issues. She talks about the benefits of states using a consumption tax over an income tax. Having a consumption isn't some abstract idea she has made up, it is already being used by states such as Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Using a consumption tax to fund various individual state expenses will be beneficial to both tax payers and state governments.
A consumption tax will be beneficial to tax payers because states can opt to not tax basic necessities, like food or medicine. By doing this Amanda Grossman states that it will, "Decrease the tax burden on those struggling to get by. So if you are a frugal shopper who only buys the basics, you'll pay less taxes than you used to." This will hopefully in turn put more money in the pockets of the poor people who then have more money to spend. Some people may argue that this will hurt the upper class who consume more. However, the idea behind this policy is to offer an incentive to those who abuse dwindling or harmful resources to use less. In doing so the policy will also be beneficial to state government because it will change the buying behaviors of its people for the better. Also the government won't have to spend so much money on programs like food stamps and medicine because they will cost less for people.
Future research question: What impact would a consumption tax have on the environment?

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