Experts Warn Against Consumption Tax

NEW ORLEANS (AP) - A poorly designed tax system overhaul to make the current income tax more like a consumption tax would be "the worst of all worlds," experts told a presidential commission Wednesday.
Bob Greenstein, founder and executive director of the Center on Budget and Policy Priorities, told the President's Advisory Panel on Federal Tax Reform not to add consumption tax features, such as large tax-free savings accounts, to the income tax.
"That approach, I think, is the worst of all worlds," he said. "It's sort of a `what not to do.'"