Greenspan promotes consumption tax idea

Federal Reserve Chairman Alan Greenspan said in testimony on Thursday 3 March that some form of a consumption tax - such as a national sales tax - could spur greater economic growth but stressed a move to such a system would pose considerable problems.

"Many economists believe that a consumption tax would be best from the perspective of promoting economic growth," Greenspan said, "particularly if one were designing a tax system from scratch - because a consumption tax is likely to encourage

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