Q.

Who among the following has suggested tax on expenditure?

A. Dalton
B. Kaldor
C. Musgrave
D. Gautam Mathur
Answer» B. Kaldor
Explanation: Nicholas Kaldor's seminal' work, titled 'An Expenditure Tax,' was brought out in 1955. Kaldor asked to levy a tax on a person's expenditure (consumption), instead of on his income. When expenditure is made the basis of taxation, the problems created by the non- comparability of various types of accruals of wealth resolve themselves. This was his major argument in favour of an expenditure tax.
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