부산대학교 도서관

This article looks at some of the factors motivating the increased attention being given to replacement of the income tax system and discusses the aspects of an alternative tax system that will lessen economic and political problems in the U.S. The potential of replacing the individual and corporate income tax system with a consumption-based cash-flow approach. It provides tax relief to savers by exempting saving and investing from taxation. It provides greater economic benefits without necessarily raising tax above what is outlined in the economic plan. A business cash-flow tax system prototype could assume replacement of the corporate income tax and the business portion of the individual income tax system. It would tax a the difference between business receipts and business costs, where costs cover materials and investment purchases but exclude labor compensation. On the individual side, it would approximate the consumed-income tax method.