Personal Consumption should be taxed instead of Person Income (Warren, 2017). This is because taxing personal income discourages people from working as hard as they are supposed to in fear of being taxed by the government. Additionally, taxing personal income will discourage people from saving, whereby they will have less money for Consumption in the future after retirement. When people have less money to consume, the economy is adversely affected, and the government will have less revenue from personal income tax collection. Therefore, an income tax is not supposed to be levied on individuals when they earn money or receive dividends, interests, and capital gains from their investments. When imposed, the consumption tax will encourage savings and investment and make