Proposed Tax Reforms Could Revolutionize International Economic Landscape
Several proposals have been made to change the U.S. income tax system to a consumption-based tax. These proposals aim to increase savings, simplify tax compliance, and potentially impact international trade. The three main proposals evaluated are the national retail sales tax, the Unlimited Savings Account tax, and the flat tax. Each proposal has different approaches to taxing consumption and handling cross-border transactions. The differences between these proposals and the standard value-added tax used by other countries could affect how the U.S. interacts with other nations economically.