Consumption Tax

Consumption Tax
A tax on the purchase of a good or service. Consumption taxes can take the form of sales taxes, tariffs, excise and other taxes on consumed goods and services. The term can also refer to a taxing system as a whole where people are taxed based on how much they consume rather than how much they add to the economy (income tax).

The consumption tax is not a new idea. It was used by the U.S. government for much of our history before being replaced with an income tax. The Bush administration backed a version of this in 2003, although the proposal was defeated. Ideally, a properly designed consumption tax system would reward savers and penalize spenders.

Investment dictionary. . 2012.

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  • Consumption tax — Taxation An aspect of fiscal policy …   Wikipedia

  • consumption tax — a tax, as a sales tax, levied on consumer goods or services at the time of sale. [1900 05] * * * Levy such as an excise tax, a sales tax, or a tariff paid directly or indirectly by the consumer. Consumption taxes fall more heavily on lower income …   Universalium

  • consumption tax — See: value added tax * * * consumption tax consumption tax ➔ tax1 * * * consumption tax UK US noun [C or U] ► TAX a tax that is added to the price of goods and services bought by the general public: »Under a consumption tax, those who spend more… …   Financial and business terms

  • consumption tax — An *indirect tax charged on a good or a service. The burden of a consumption tax falls on the individual or organization that enjoys the full *worth of a good or service. It is levied at the final stage of the economic process of production,… …   Auditor's dictionary

  • consumption tax — /kənˈsʌmpʃən tæks/ (say kuhn sumpshuhn taks) noun a tax imposed on the consumption of goods and services and levied on the retail value of the product at the point of sale to the final consumer …  

  • consumption tax — a tax, as a sales tax, levied on consumer goods or services at the time of sale. [1900 05] …   Useful english dictionary

  • consumption tax — See use tax …   Ballentine's law dictionary

  • Natural resources consumption tax — Taxation An aspect of fiscal policy …   Wikipedia

  • Tax system in China — Taxes provide the most important revenue source for the Government of the People s Republic of China. As the most important source of fiscal revenue, tax is a key economic player of macro economic regulation, and greatly affects China s economic… …   Wikipedia

  • Niue Consumption Tax — The Niue Legislative Assembly have passed the Niue Consumption Act during the first week of February 2009, the 12.5 percent tax on good and services is expected to come into effect on 1 April 2009. Income tax has also been lowered, and import tax …   Wikipedia

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