Kotlikoff's tax proposal

Kotlikoff’s tax proposal aims to simplify and make the tax system fairer by replacing multiple existing taxes with a single "X-tax" on consumption. Instead of taxing income, savings, or investments separately, it taxes households based on their total consumption—what they spend annually. This encourages saving and investment, promotes economic growth, and reduces loopholes. The system also considers lifetime resources, which helps address issues like wealth inequality and tax evasion, creating a more transparent and efficient way to fund government services while promoting economic fairness.