An advantage of a consumption tax is that it does not distort the incentive to save.

Name: An advantage of a consumption tax is that it does not distort the incentive to save.
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A consumption tax only taxes money when it is spent, not when it is earned or saved, which means people are not discouraged from saving their income, unlike income taxes which tax earnings regardless of whether they are saved or spent.

An Advantage of a Consumption Tax Is That It Does