In this Article, Senator Domenici makes a powerful case against the ''
anti-saving, anti-growth'' aspects of the current federal income tax a
nd proposes replacing it with a progressive consumption tax, or ''savi
ngs-exempt'' income tax. Along with Senator Sam Nunn, Senator Domenici
has developed a proposed consumption tax, which he discusses in detai
l in this Article, explaining the policy reasons behind the proposal a
nd candidly highlighting unresolved issues. Senator Nunn and Senator D
omenici have not reached final agreement on all topics discussed in th
is paper; this Article represents Senator Domenici's current thoughts
on these unresolved issues. Senators Nunn and Domenici plan to hold a
series of seminars and hearings about their proposal. In 1984, with th
e publication of Treasury I, the movement for tax reform began in earn
est. Today, Senator Domenici's Article illustrates continued Congressi
onal pressure for tax reform and may provide a preview of the road ahe
ad.