X tax

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The X tax is an approach to taxation, suggested in the United States, that can be described as a standard European-style credit-invoice value added tax (VAT), except that wages are deducted by businesses and taxed at progressive rates to workers.[1] Businesses are taxed on gross receipts and individuals taxed on wages, with neither businesses or individuals paying tax on financial transactions or financial instruments.[1] The plan was created by Princeton University economist and New York University School of Law professor David F. Bradford.[2]

Bradford states the X tax could alleviate the complexities and avoidance issues plaguing the existing U.S. system,[3] and argues that "the government should exempt from taxation all dividends, interest, and other income from savings. That way, people will be treated equally by the tax system, whether they choose to spend now or save to increase their future spending power."[2]

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Notes[edit]

  1. ^ a b Bankman, Joseph; Schler, Michael (2005-09-12). "Tax Planning Under The Flat Tax/X-Tax" (PDF). American Tax Policy Institute. Retrieved 2007-08-28. 
  2. ^ a b Coy, Peter (2003-03-09). "Beyond Bush: A Simple Plan to Tax Consumption". Business Week. Retrieved 2015-02-19. 
  3. ^ Bradford, David F. (2003-08). "The X Tax in the World Economy" (PDF). Princeton University. Retrieved 2007-08-28.  Check date values in: |date= (help)

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