Research Report A Federal Consumption Tax as Replacement for the Employer Payroll Tax
James R. Nunns, Joseph Rosenberg
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Introducing a federal consumption tax as a replacement for the employer payroll tax would achieve the intended policy goals of prior consumption tax proposals while overcoming their policy shortcomings. The base and design of the consumption and employer payroll taxes are closely related, minimizing risks of economic dislocations and unintended consequences. The proposal is progressive, reduces horizontal inequities, and improves economic efficiency.
Research Areas Taxes and budgets
Tags Individual taxes Taxes and business
Policy Centers Urban-Brookings Tax Policy Center