Greenspan first calls for cutting Social Security benefits, which would mean part of that 12.4% payroll contribution would become a pure and simple backdoor employment tax increase. Now Greenspan calls for lower taxes on capital income as he endorses a consumption tax. Is Dr. Greenspan trying to claim incentive effects on apply to taxes on capital income and not on labor income?
Update: AB reader Frank tell us that Edward McCaffery’s Fair Not Flat : How to Make the Tax System Better and Simpler is an interesting read on progressive consumption tax proposals – similar to that of David Bradford. Amazon lets us see the index to this book, which refers to the late Dr. Bradford on page 58. Many thanks to Frank for this reference and to Jeffrey for his comments and questions.