- X tax
The X tax is an approach to
taxation , suggested in theUnited States , that can be described as a standard European-stylecredit-invoicevalue added tax (VAT), except thatwages 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 onfinancial transactions orfinancial instruments . The plan was created David F. Bradford, an economist andPrinceton University andNew 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 alldividends ,interest , and otherincome fromsavings . 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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