Simplifying instruments of taxation

This applies primarily to the definition of the tax base, with fewer tax rates and fewer adjustments to the base. Commodity taxes can for example be consolidated, eliminating or streamlining special tax incentives for investment, production and trade. Taxation of consumption can be emphasized rather than taxation of production. International trade can be taxed to a greater degree than domestic transactions. Income taxes can be simplified by restructuring company taxes so that average effective rates are high for revenue purposes and marginal effective rates low for investment purposes. Personal taxes can be restructured to include all sources of income, with lower minimum rates, fewer brackets, higher exemptions, and the elimination of most existing special allowances.