Analysis: Alternative U.S. Tax Code
Introduction For some time now, there has been a growing discussion on whether the taxation base we are currently using is the right one. Some people argue that the fact that we are using income as the base of taxation makes the economy as a whole very inefficient. Plenty of proposals have been put forth, all with different specifications and details, aimed at making our tax system an effective and equitable mean to provide our government with funds. The taxation system that we will be analyzing consists in changing the taxation base from income to consumption while getting rid of the corporate income tax. Plenty of European countries already have a taxation system in place which uses consumption and not income as the base for federal taxation, and many analyses have been made on whether eliminating corporate income tax is something that will be generally beneficial or detrimental for a country’s economy. The specifics of the proposed tax code will be discussed fu