Who among the following has suggested tax on expenditure?
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Dalton
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Kaldor
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Musgrave
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Gautam Mathur
B
Correct answer
Explanation
Nicholas Kaldor proposed the expenditure tax in the 1950s as an alternative to income taxation. The idea was to tax consumption rather than income, which could encourage saving and reduce economic inequality. This approach differs from traditional income taxes by focusing on what people spend rather than what they earn.