DISQUS

David@DINKS Finance · 2 months ago

I can't help but throw this out there: A flat tax on consumption would lead to unprecedented prosperity in America.

I don't know why we spend all the time, money, and effort to punish people for earning more money and making our economy more vibrant. Just blows my mind.

Apex · 2 months ago

There are many arguments for a consumption tax. People get hung up on arguing about why its beneficial or why its not. If its good or not is irrelevent. Elimination of the income tax has zero chance of happening in any time frame that could benefit (or harm) anyone arguing for it.

You can't even get any traction on a flat tax let alone a flat sales tax where it can so easily be used to vilianize rich people who need to spend far less of the disposible income. I can already hear the arguments .... Ya but ..... think of the investment it frees up, think about the foreign competitiveness of our companies, think about taxing the underground economy, think about .... blah blah blah.

None of that matters. You already have a strong sense among large parts of the populace and even larger parts of the congress that the rich don't pay enough, that poor people can't make it on what they have, that the curret tax code is too regressive and now you think you can get a tax code where as a percent of income it can easily be made to look more regressive.

Oh but wait, the first 36K is tax exempt and then you only have to tax 13% of income after that, its a good deal for everyone. Excuse me? How does that work? The sales tax magically defies the laws of mathematics? Or wait it must artificially grow the economy at like 20% a year or something right? The numbers just don't add up. I have run the numbers. If you give a 36K exemption you can't fund the government with a 30% flat sales tax. And of course you have to exempt houses from that, and probably cars, and once you start that who knows what else and then what tax rate do you need?

Pick your time frame. 5 years, 10 years, 20 years, 40 years. I will bet my entire net worth that it doesn't happen.

However what may happen from everyone continuing to argue for it is that we get both. The current congress has already proposed a 1-3% national sales tax to pay for health care. You leave the income tax in place an put in place a small sales tax and who wants to bet in 40 years that the income tax continues to take 20% of income and the sales tax takes another 20.

Just stop it with the nonsense about replacing the income tax with a sales tax. It's never going to happen, if you knew the details of what it would have to really look like to actually fund the government you probably wouldn't want it, and you just might get both if you try hard enough. So please, stop it already.

Robert · 2 months ago

Luckily (or not, however you want to look at it) I'm not in the highest few tax brackets :)

Audrey · 2 months ago

We need a pro-growth agenda that urges congress and the Obama administration to enact policies that bring tax rates in line with our global competitors. We need to keep chipping away at the deficit by taking steps to control wasteful government spending. See http://www.friendsoftheuschamber.com/issues/ind...