consumed-income tax

consumed-income tax definition - business

consumed-income tax

A tax levied against only the part of income that is spent. Proponents of this type of taxation contend that exempting the portion of income that is saved will encourage savings, provide funds for investment, and make the economy more productive.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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