Advocates of taxing consumption rather than income argue that a. the current tax code discourages people from saving. b. the rich consume a higher fraction of income than the poor. c. a consumption...

Advocates of taxing consumption rather than income argue that a. the current tax code discourages people from saving. b. the rich consume a higher fraction of income than the poor. c. a consumption tax is a better automatic stabilizer. d. taxing consumption does not cause any deadweight losses.

Critics of taxing consumption rather than income argue that a. switching to a consumption tax would benefit the rich. b. private saving does not respond much to tax incentives. c. reducing the budget deficit is a better way to raise national saving. d. All of the above.