The Pros and Cons of Income vs. Consumption Taxes
With lawmakers in Charleston facing a $500 million budget hole, they're debating big changes to the tax code, including eliminating the income tax and raising sales taxes. Is that wise?
West Virginia University Bureau of Business and Economic Research Director John Deskins explains the pros and cons on this week's Front Porch Podcast.
“The difference is savings,” Deskins told WVU News. “Under a consumption tax only the money you spend on ‘stuff’ is taxed; all the money you save is tax free until you spend it in the future.” And savings can lead to more economic growth over the long term.
The downside of higher consumption taxes, he says, is the impact it has on low-income families.
Welcome to “The Front Porch,” where we tackle the tough issues facing West Virginia and Appalachia with some of the region's most interesting thinkers.
WVPB Executive Director Scott Finn serves as host, joined by Laurie Lin, a conservative lawyer and columnist, and Rick Wilson, a liberal columnist and avid goat herder who works for the American Friends Service Committee .
An edited version of “The Front Porch” airs Fridays at 4:50 p.m. on West Virginia Public Broadcasting’s radio network, and the full version is available at wvpublic.org and as a podcast as well.
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The Front Porch is underwritten by The Charleston Gazette Mail, providing both sides of the story on its two editorial pages. Check it out: http://www.wvgazettemail.com/