> What should we tax instead? My proposal (in the GP of the post you responded to) was to tax consumption, i.e., a national sales tax or something like it. >

> What should we tax instead? My proposal (in the GP of the post you responded to) was to tax consumption, i.e., a national sales tax or something like it. > Capital seems to me a viable choice. What would count as "capital"? Whatever the answer is, this would seem to me to have the same issue as income taxes have: you would be taxing production instead of consumption, hence lowering the incentive to produce.