1
   

Consumption Tax

 
 
yeahman
 
Reply Sat 13 Sep, 2003 05:21 pm
just wanted your thoughts on replacing the income tax with a consumption tax which involves a federal sales tax (~15%?) with the exception of food, clothing (ie. under $100 above which it would be taxed on the portion above $100), raw materials (ie. wood, metal...), and other necesities like water, oil, gas, electricity (up to a certain limit above which it would be taxed on the portion it goes over).

it would also involve eliminating the corporate income tax and dividend tax.

it would encourage saving and stimulate investment and it just seems more fair. why penalize people for the money they make? it would eliminate a lot of tax loopholes and evations and help emphasize profits. it would almost eliminate the need for the IRS.
  • Topic Stats
  • Top Replies
  • Link to this Topic
Type: Discussion • Score: 1 • Views: 876 • Replies: 3
No top replies

 
Butrflynet
 
  1  
Reply Sat 13 Sep, 2003 05:59 pm
If we're going to have a consumption tax, there needs to be no exceptions. Start creating exceptions and you might as well keep the tax plan we currently have.

It needs to be a flat rate for everyone, no matter what your income level.
0 Replies
 
roger
 
  1  
Reply Sat 13 Sep, 2003 06:11 pm
Flat rate, also without exceptions or deductions, and revenue neutral?
0 Replies
 
yeahman
 
  1  
Reply Sat 13 Sep, 2003 07:10 pm
you have to have exceptions for food and other necessities. otherwise the poor would be totally screwed. some states already exempt certain products from state tax.

and raw materials and possibly some equipment. otherwise you're adding 15% to the cost of manufacturing a product plus a 15% tax on the sale. that's a 32.25% increase in the price of all manufactured goods not including the increase in fixed costs.
0 Replies
 
 

Related Topics

Leveraged Loan - Discussion by gollum
Web Site - Discussion by gollum
Corporate Fraud - Discussion by gollum
Enron Scandal - Discussion by gollum
Buying From Own Pension Fund - Discussion by gollum
Paycheck Protection Plan - Question by gollum
Dog Sniffing Electronics - Question by gollum
SIM CARD - SimTraveler - Question by gollum
Physical Bitcoin - Question by gollum
Bitcoin - Question by gollum
 
  1. Forums
  2. » Consumption Tax
Copyright © 2021 MadLab, LLC :: Terms of Service :: Privacy Policy :: Page generated in 0.03 seconds on 06/19/2021 at 06:59:19