Thread: The flat tax
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Old 11-21-2014, 12:59 PM   #19
Bill Bumface
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Quote:
Originally Posted by BigNumbers View Post
You can never go to a consumption based tax rate - you folks don't understand that this is one of the largest economic levers we have. Going to consumption-based taxation creates a huge tax advantage for savers, which is bad for the economy.

It'll never happen, terrible full cycle economics idea.

I would prefer the feds moved to a flat tax rate as well.
Does it though?

If you bury your tax in the prices of goods and services and people's perceived disposable income is now much higher to account for it, you honestly think people will just start spending less?

There are tax incentives for saving now. RRSP, TFSA, RESP. How many people maximize those vehicles?

I'd be really curious what percentage of the population maxes out their RRSP every year.
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