A consumption tax is a tax on the purchase of a good or service. It is known as a tax on the sale of a product or service; hence its commonly used name—a sales tax. There are a number of proponents for taxing based on use rather than income. Webster’s New World Finance and Investment Dictionary defines a consumption tax as “a taxation system in which taxes are assessed on how much the taxpayer spends instead of on the taxpayer’s income.”In this discussion, explain whether you believe that the federal government should abolish the current income tax structure and replace it with a consumption tax structure. Explain the pros and cons of the current income tax structure and the consumption tax structure. Support your argument with examples, providing the appropriate citations.
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