The NewStandard ceased publishing on April 27, 2007.

Greenspan Gives Nod to Bush National Sales Tax Proposal

by Madeleine Baran

Mar. 4, 2005 – Federal Reserve Chairman Alan Greenspan entered the debate over a national sales tax yesterday, when he commented that a new consumption tax could bolster the national budget and provide a partial replacement for income taxes.

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Greenspan made the remarks at the President’s Advisory Panel on Federal Tax Reform. President Bush’s advisors have advocated a push towards taxing consumption, instead of taxing income.

Critics, including advocates for low-income earners, argue that consumption taxes would disproportionately tax the poor, who spend most of their income on necessities like food and medicine.

Greenspan said policy-makers could create a tax that would exclude products mostly purchased by the poor, but the Bush administration has yet to unveil such a plan.

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The NewStandard ceased publishing on April 27, 2007.

Madeleine Baran is a contributing journalist.

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