Consumption Taxation

According to the Nation Center for Policy Analysis, our fearless leader (that'd be Bush), supports a move towards Consumption Taxation, as proposed by Jim in this blog entry. It's good to see Jim and George so closely aligned on this particular issue!!!

Here are some excerpts

The Bush Administration supports a fundamental tax reform that would move the federal tax system away from taxing income toward taxing consumption. This is a highly desirable goal, because it will raise growth and living standards for most Americans...

Consumption taxes are less burdensome than income taxes because of the way they treat saving. Under an income tax, all returns to saving and investment - interest, dividends, rent and capital gains - are fully taxed. Under a consumption tax, they would be exempt. Consequently, saving and investment are much higher with a consumption tax than an income tax...

Additionally, according to this article, "supported by President Bush", "[w]ithout much public debate or even awareness, the United States is heading toward an almost flat tax.", which would give us a mix of consumption and flat income taxes just like Jim proposed.