Quote:
Originally Posted by BigNumbers
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.
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Its just not true. While there are obvious incentives for savers under that system, this has been implemented in other jurisdictions successfully. I think that there are a number of states that have no personal income taxes. Some have corporate taxes and some use purely consumption taxes to pay the bills.
There are ways to structure things, and frankly its better than individuals saving receipts for $58.47 of spending so that they can file a return and save like $8. That is just plain stupid, but we all have to play along with this song and dance anyway.