1.3: New Revenue

Find new sources of revenue.

Other Information:

Some policy experts have proposed looking for new sources of revenue other than income taxes. Many policy experts believe that taxes on spending, or consumption, are preferable to taxes on income. This is because taxes on income might discourage people from working, while taxes on spending encourage people to save more because a tax on spending would make consumer products more expensive. Increased saving would in turn reduce our reliance on foreign lenders because American would have more funds to lend to the Treasury. Two common suggestions for new taxes include a consumption tax and a carbon or other form of energy tax.

Stakeholder(s):

• Americans

Indicator(s):

Indicator:1

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