Penn State International Law Review

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The consumption tax is a word often heard when discussing tax reform; however, few discuss the specific implications of a consumption tax. Furthermore, it is even more rare to discuss the international effects of a consumption tax. This comment will provide a basic framework for the international considerations and consequences of a consumption tax. In part I, I will provide a terse definition of a consumption tax followed by part II which will begin the discussion on the characteristics of a consumption tax. Many of the examples in parts I and II are given in light of tax reform proposals in the United States; however, as part IV and V will show, these characteristics are not limited to the consumption tax in the United States.