Tuesday, January 13, 2009
Alan Krueger proposes implementing a consumption tax in a couple years for deficit reduction. It will be interesting to see what happens with regards to tax reform. At this point there are several different moving pieces that will or could affect taxes: the expiration of the bush tax cuts, climate change legislation, and health care (what to do with the tax exemption for employer provided plans). Add to that mix there will be some desire to increase revenues above and beyond what the current tax structure allows, obviously allowing some of the Bush tax cuts will do something but not as much as one thinks (provided Obama maintains his pledge not to raise income taxes for those who earn less than $250k).