X tax

X tax

The X tax is an approach to taxation, suggested in the United States, that can be described as a standard European-stylecredit-invoice value added tax (VAT), except that wages are deducted by businesses and taxed at progressive rates to workers.cite web|url=http://www.americantaxpolicyinstitute.org/pdf/FallConference2005/NYCorp_2532993_3.pdf |title=Tax Planning Under The Flat Tax/X-Tax | publisher=American Tax Policy Institute |last=Bankman |first=Joseph | coauthors=Schler, Michael| date=2005-09-12 |accessdate=2007-08-28] Businesses are taxed on gross receipts and individuals taxed on wages, with neither businesses or individuals paying tax on financial transactions or financial instruments. The plan was created David F. Bradford, an economist and Princeton University and New York University School of Law professor.cite web|url=http://www.businessweek.com/magazine/content/03_10/b3823100_mz057.htm |title=Beyond Bush: A Simple Plan to Tax Consumption |last=Coy| first=Peter| publisher=Business Week |date=2003-03-10| accessdate=2007-08-28]

Bradford states the X tax could alleviate the complexities and avoidance issues plaguing the existing U.S. system,cite web|url=http://www.princeton.edu/~ceps/workingpapers/93bradford.pdf |title=The X Tax in the World Economy | publisher=Princeton University|last=Bradford |first=David F. | date=2003-08 |accessdate=2007-08-28] 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."

ee also

*Income tax in the United States
*Taxation in the United States
*Tax reform

Notes

External links

* [http://www.wws.princeton.edu/bradford/ Bradford's Princeton Homepage] , Woodrow Wilson School Princeton University
* [http://www.nber.org/cgi-bin/author_papers.pl?author=david_bradford Bradford's Working Papers] , National Bureau of Economic Research


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