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Progressive Consumption Taxation as a Remedy for the U.S. Savings Shortfall

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  • Frank Robert H

    (Cornell University)

Abstract

The American savings rate, always low by international standards, has fallen sharply in recent decades. In this essay, I argue that a large part of the savings shortfall results from pressures to keep pace with community spending standards, pressures that have been exacerbated by rising income and wealth inequality. The progressive consumption tax is one possible remedy.

Suggested Citation

  • Frank Robert H, 2005. "Progressive Consumption Taxation as a Remedy for the U.S. Savings Shortfall," The Economists' Voice, De Gruyter, vol. 2(3), pages 1-11, August.
  • Handle: RePEc:bpj:evoice:v:2:y:2005:i:3:n:2
    DOI: 10.2202/1553-3832.1089
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    Cited by:

    1. Alcalá Francisco, 2009. "Time, Quality and Growth," Working Papers 201052, Fundacion BBVA / BBVA Foundation.

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