Quote:
Originally Posted by calgarygeologist
Consumption tax seems good but at what rate would the government need to tax at in order to cover current income tax? Maybe I'm not looking at the big picture properly but currently someone making $500,000 pays about $200,000 in income tax. At 25% consumption tax they would have to spend $800,000 to cover that same tax burden. Are the "rich" people really spending enough money to generate enough revenue via consumption tax especially if we remove essentially items from the tax base?
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I don't think that you an blanket it like that, though. With income tax you have ways to reduce the taxable income and things like that. A consumption tax doesn't allow for that.