Pay Up, Big Spenders

Growing calls for a consumption tax that would spur saving

In the law that every Boy Scout must learn, the word "thrifty" comes right before "brave, clean and reverent." Yet when a Scout grows up and runs into the U.S. tax code, he finds that a different law is in effect. Uncle Sam rewards big spenders much more than those who save. If a person earns $1,000 and spends it, that income is taxed only once. But if he saves the $1,000, he generally pays additional taxes on the interest the money earns. The combined impact of taxes and inflation can make...

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