National sales tax: Pros and cons?
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National sales tax: Pros and cons?
| Tue, 09-07-2004 - 10:49pm |
I'm curious what everyone's opinion is on replacing our current tax code with a national sales tax.
I admit that I have not yet taken the time to do a lot of research on the pros and cons, but it sure sounds good to me so far.
One of my biggest beefs with the current tax code is that it penalizes higher earners just because they earn more. Not a good way to encourage productivity and self-reliability.
And it allows a lot of loopholes and uncollected taxes. A national sales tax might actually collect more taxes since fewer things could be hidden.
The main argument I can think of against it is that it would hurt the poor. But if clothing and food items were exempt (as they are in some states already), that should take away that argument.
What do you all think?
Carrie


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While there is certainly a deterent to spending with a sales tax, a progressive income tax has a greater stiffling effect on the economy than a consumption tax does.
"a progressive income tax has a greater stiffling effect on the economy than a consumption tax does."
How so? We had a progressive income tax during the 20th century and it didn't slow the economy. If you have a reason this is incorrect, let's here it. I think libraone's post pretty well extablishes what is needed for a strong economy.
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