Problem
There is a widespread view that the appropriate basis for taxation is an individua's lifetime consumption (or lifetime income). Discuss the inequities and inefficiencies that would arise from a consumption tax which had increasing marginal tax rates but no provisions for averaging years of low consumption with years of high consumption. Would these problems also arise under a flat-rate consumption tax?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.