Consumption Tax

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Dictionary Says

Definition of 'Consumption Tax'

A tax on the purchase of a good or service. Consumption taxes can take the form of sales taxes, tariffs, excise and other taxes on consumed goods and services. The term can also refer to a taxing system as a whole where people are taxed based on how much they consume rather than how much they add to the economy (income tax).
Investopedia Says

Investopedia explains 'Consumption Tax'

The consumption tax is not a new idea. It was used by the U.S. government for much of our history before being replaced with an income tax. The Bush administration backed a version of this in 2003, although the proposal was defeated. Ideally, a properly designed consumption tax system would reward savers and penalize spenders.

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'Consumption Tax'

  • Soda Tax: Penalizing The Pudgy - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0909/Soda-Tax-Penalizing-The-Pudgy.aspx
    ... of Medicine. Would the tax stop consumption? It would certainly slow it
    down, as prices hikes generally have that effect. Of course ...

  • How Influential Economists Changed Our History

    http://www.investopedia.com/articles/07/economists.asp
    ... is worth what people think it is worth." His works were even circulated underground
    during the Cold War, and were the basis for a consumption-tax based economy ...

  • Opportunities Are Rising In Japan

    http://stocks.investopedia.com/stock-analysis/2011/Opportunities-Are-Rising-In-Japan-EWJ-DXJ-JCS-IFAS0117.aspx
    ... Plans to raise the income tax for higher-earning salaried workers and a future increase
    in the 5% consumption tax are in the works, and the recently appointed ...

  • Investopedia's Forex Outlook For May 2012: Japanese and British ...

    http://www.investopedia.com/university/monthly-forex-report-may-2012/japan-and-britain-economies.asp
    ... Japan has announced plans to halve its primary deficit by 2015 and achieve a primary
    surplus by 2020, while doubling its consumption tax to 10% by 2015. ...

  • "Temporary" Taxes That Stuck

    http://www.investopedia.com/articles/tax/10/temporary-taxes-that-stuck.asp
    ... Advocacy groups who want to limit alcohol consumption are in favor of the high tax
    rates, but unions who want to protect liquor resellers who oppose it. ...

  • 5 Ways The United States Can Get Out Of Debt - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0611/June-20-5-Ways-The-U.S.-Can-Get-Out-Of-Debt.aspx
    ... In Canada, for example, there's a 5% national sales tax - a consumption levy many
    economists prefer to higher taxes on income or investments since those ...

  • Do Tax Cuts Stimulate The Economy?

    http://www.investopedia.com/articles/07/tax_cuts.asp
    ... where: C = consumption spending by individuals; I = investment spending (business
    spending on ... Supply side tax cuts are aimed to stimulate capital formation. ...

  • 6 Hidden Government Revenue Streams - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0510/6-Hidden-Government-Revenue-Streams.aspx
    ... A sales tax is a tax on consumption and is added to just about any product that
    you buy including food, clothing, gasoline, alcohol, cigarettes, etc. ...

  • The Most Outrageous Taxes - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0212/The-Most-Outrageous-Taxes.aspx
    ... objective is thus to discourage people from consuming the good, or at least to collect
    enough tax revenue to offset any drawbacks to the good's consumption. ...

  • Paying Uncle Sam: From Tobacco To $1 Trillion

    http://www.investopedia.com/articles/08/US-taxes.asp
    ... Economists often propose basic changes to the tax system like a flat tax on earned
    income or consumption-based taxes instead of income tax, but both these ...

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