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The X Tax is an approach to taxation conceived by Princeton University economist and New York University School of Law professor David F. Bradford,^[1] It consists of two taxes.

The corporate tax component, referred to as the business cash flow tax, levies taxes on company sales while excluding material expenses and wages. This approach is designed to incentivize businesses to invest in advanced equipment and technology by not subjecting such investments to taxation.

The personal tax component, referred to as the household wage tax, involves a progressive structure, with tiered rates that peak at a level equivalent to the corporate tax rate. Individuals or households are taxed on their consumption, which is calculated as income minus savings and investment, with deductions based on family size, making the X Tax more progressive compared to other consumption taxes.^[2][3]

The X Tax is intended to streamline the tax code, foster economic expansion, and preserve progressive taxation. Additionally, it seeks to stimulate savings and investments by eliminating double taxation. Under the X Tax, financial transactions and instruments are not subject to taxation for both individuals and corporations. Bradford argues that "the government should exempt from taxation all dividends, interest, and other income from savings. That way, people will be treated equally by the tax system, whether they choose to spend now or save to increase their future spending power."^[4]