greenspan's plan - good or bad?
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greenspan's plan - good or bad?
| Fri, 03-04-2005 - 12:15pm |
Did you hear that Alan Greenspan's suggestion to reduce the federal income tax in favor or a national sales or consumption tax? It sounds intriguing to me. To be taxed on what you spend instead of what you earn.
HMM.
Of course, it would be high on things like a car or house, but when leveled against about 28% of everything you make for the rest of your life, its not so bad.
And there would be no one for those who have the most to get out of paying taxes.
Of course I am now spending much less than I was in the past.
It could encourage savings and responsible spending.
What do you think?
Sandra
HMM.
Of course, it would be high on things like a car or house, but when leveled against about 28% of everything you make for the rest of your life, its not so bad.
And there would be no one for those who have the most to get out of paying taxes.
Of course I am now spending much less than I was in the past.
It could encourage savings and responsible spending.
What do you think?
Sandra

I love the idea of a national sales tax. For one, just not having to deal with tax filing each year would be a wonderful change. LOL! :-D But also just having to pay tax on the items you actually buy and consume would be great too.
It would be interesting to see if people change their buying habits if this were to actually happen. :-) Sure, the tax rate would be high on the purchase, but the consumer would have a lot more of his/her paycheck in their hand.
And how would this affect those of us who pay state taxes, I wonder. Would we still have that deducted from our paychecks like we do now?
If we could just get rid of Federal Taxes on our income, that would be an extra $498 ($12,948 per year) in each of our paychecks. If we could rid ourselves of both Fed AND state, we could see an extra $682 in every paycheck ($17,732 annually).
With our new frugal lifestyle, I could really pay down some debts with that extra money. :-D
Go Alan Greenspan! :-D LOL! :-D
Pat
This would definetly cause our nations second tax revolt!
I think offering a choice between filing a flat tax or the normal income tax would be best. No one would be forced into either one...You choose which will result in a lower tax liability.
Check out the Cato Institute for a great article about this topic.
Jaime
Happy Filings!