Document Type


First Faculty Advisor

Bates, Laurie


Corporate; Tax; Reform; Economics


Bryant University


This thesis points out the inefficiencies associated with the corporate income tax system in the United States. After reviewing alternatives, I suggest adapting a consumed income tax to form a new ‘progressive consumed income tax’ to take us into the 21st century.

Using current data from international tax system changes, international tax rate comparisons, economic theory, and economists’ views I will provide evidence to support my argument that the progressive consumed-income tax is the best possible plan for economic growth in America. With the implementation of a consumption-based tax, the corporate income tax is completely eliminated. I will demonstrate the economic effects of this change as well as provide a model for a progressive consumed-income tax system. The simplicity, efficiency, administrative ease, and economic incentives provided by a consumption-based tax are overwhelmingly positive. This economic analysis will prove that the move to the progressive consumed-income tax is the best option when looking at tax reform.