I would add to your TLDR what is actually being taxed: > The way it works is simple: Instead of reporting your income to the I.R.S. and being taxed on that, yo

I would add to your TLDR what is actually being taxed: > The way it works is simple: Instead of reporting your income to the I.R.S. and being taxed on that, you report your income minus your savings, and you’re taxed on that. That’s a consumption tax: Your taxable income is what you spend, not what you save. > I’m more interested in another feature of the progressive consumption tax: the ability to dial it up and down to respond to different economic conditions. In a time of recession, we could drop taxes on new spending [...] In times of inflation, we could raise taxes on new spending. The article argues this is better than adjusting the interest rat, because higher interest rates decrease demand and supply. To tame inflation, we need to decrease demand but increase supply.