Research Report Lower-Income Households Spend Largest Share of Income
Leonard E. Burman, Troy Kravitz
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Recently, there has been a renewed interest in large-scale tax reform, namely a broad-based tax on consumption. Data from the Consumer Expenditure Survey give reason to worry about the likely regressivity of a consumption tax. The data indicate that low-income households spend virtually all of their income while high-income households spend less than 40 percent.
Research Areas Taxes and budgets
Tags Federal budget and economy Campaigns, proposals, and reforms Federal tax issues and reform proposals
Policy Centers Income and Benefits Policy Center