of money that the homeowner could receive in rent is the imputed rental value of the home. A true consumption tax would tax the imputed rental value of the home (which could be determined in the same way that valuation occurs for property tax purposes) but not the increase in the asset value (the home). Andrews proposes to ignore this method of taxing imputed rental values because of its complexity. In the United States, home ownership is subsidized by the federal government by permitting limited deductions for mortgage interest expense and capital gains. Therefore, treating renters and homeowners identically under such a consumption tax may not be feasible there. This issue would not arise under an expenditure tax, since all withdrawals of funds from a pre-tax investment account are treated as taxable consumption, whether these funds are used to pay rent, buy a house, or pay down mortgage principal. A person may buy a house within a pre-tax account, but would not be allowed to live there. Also, a consumption tax could utilize progressive rates in order to maintain "fairness". More consumption means disproportionately more tax liability. Economic impact The temporal neutrality of a consumption tax, however, is that consumption itself is taxed, so it is irrelevant what good or service is being consumed in terms of allocation of resources. The only possible effect on neutrality is between consumption and savings. Taxing only consumption should, in theory, cause an increase in savings. Many economists and tax experts favor consumption taxes over income taxes for economic growth. Depending on implementation (such as treatment of depreciation) and circumstances, income taxes either favor or disfavor investment. (On the whole, the American system is thought to disfavor investment.) By not disfavoring investment, a consumption tax would increase the capital stock, productivity, and therefore increase the size of the economy. Consumption also more closely tracks long-run average income. The income of an individual or family can often vary dramatically from year to year. The sale of a home, a one-time job bonus, and various other events can lead to temporary high income that will push a lower or middle income person into a higher tax bracket. On the other hand, a wealthier individual may be temporarily unemployed and earn no income. Impact on work choices Consumption taxes, like other taxes, alter individual decisions away from optimal choices. An important concern is potential impact on individual