Consumption Tax

A Consumption Tax is a transaction tax on spending on a transaction of a consumable.

• Context:
  • It can range from being an Indirect Consumption Tax to being a Direct Consumption Tax.
  • It can range from being an ad valorem Consumption Tax to being a Per-Unit Consumption Tax.
  • …
• Example(s):
  • a Sales Tax.
  • a Value-Added Tax.
  • …
• Counter-Example(s):
  • a Tax on Capital, such as a financial transaction tax or a real-estate property tax.
  • a License.
• See: Hall–Rabushka Flat Tax, Tax Base, Consumption (Economics).

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References

2016

• (Wikipedia, 2016) ⇒ http://wikipedia.org/wiki/consumption_tax Retrieved:2016-3-21.
  • A consumption tax is a tax on spending on goods and services. The tax base of such a tax is the money spent on consumption. Consumption taxes are usually indirect, such as a sales tax or a value added tax. However, a consumption tax can also be structured as a form of direct, personal taxation, such as the Hall–Rabushka flat tax.

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