THE INTERNATIONAL TREND OF TAX REDUCTION AND THE TAX BURDEN ON LOWER INCOME GROUPS

Abstract

14. As a long-range program the introduction of a federal sales tax in the form of a pyramided sales tax or as a retailer occupational tax, should be planned with a view to lowering (or totally abolishing) the direct income tax from the lower income brackets and to financing a broad program of social security.10 There is not much justification for the usual opposition against a sales tax or any indirect tax under the pretext that they " reduce consumption." The proceeds from any tax, as soon as it is collected, are spent by the government (on salaries, etc.) and, consequently, tend to increase the total amount of consumption in the country. On the other hand, the consideration of where the money collected by taxes goes is important. If it is for the benefit of the masses, improving social security, there can be no objection to making the masses participate in paying such