A Critique of Competing Plans for Radical Tax Restructuring

At almost any time there exists a plan to alter the structure of taxation, and their number seems to increase during election years. Resident
Scholar Neil Buchanan analyzes several recent tax proposals in terms of their effects on the
budget deficit, on different groups of taxpayers, and on taxpaying households as a whole. Buchanan groups the plans into three general categories: simplifying payment of income taxes,
switching to a national sales tax or value-added system, and altering the current taxation of
savings or labor incomes. The specific tax plans examined are the Gephardt plan, the Lugar
plan, the USA Tax plan, and the Armey-Shelby flat tax plan, as well as flat tax proposals in general.