Oh good heavens help us...

[kellinator]

The latest idea from Herr Shrub: Let's get rid of the income tax and replace it with a national sales tax.

This is the worst idea I've heard from the Idiot-in-Chief since... oh, who's counting?

I don't know a lot about economics, but I come from Tennessee, home of one of the highest sales taxes in the nation (including on food, and yes I do mean groceries). And sales taxes are definitely regressive.

Do the math. Say a person needs x amount of food to survive, taxed at 8%. For Bill Gates that tax is nothing; for the average middle-class American it's an 8% jump in the food bill. Talk about your cost of living increase...

I guess this is his way of saying he doesn't think he's put enough of the tax burden on the middle and lower class.

And if this post pisses you off, I don't give a fuck.

EDIT: Excellent article from resipsaloquitor:
http://money.cnn.com/2004/08/11/news/economy/election_tax/index.htm?cnn=yes

Comments

[terminalwriter.livejournal.com]

The whole "encourage investment, job growth and wealth accumulation by making investment and savings totally tax-free" pitch is just Republican nonsense, because the majority of America doesn't have enough money to give a crap about wealth accumulation.

That one I don't buy. I've increased my net worth by over $21,000 over the past year and a half, with a wife and two kids. When I started, last February I was making a little less than $23K/year. I picked up a second job, slashed spending money on unnecessary things, started paying down debt, and started upping my retiremnt contributions. This year, between the two jobs, I'll make a little under $40K/year, not high income for a family of four by almost any definition. Once the debt is gone, I'm going to work towards fully funding my retirement account and going back to school to increase my means.

It's all about willing to do a little sacrificing and extra work. And I bought and paid off a car during that period as well, because my old one kicked the bucket. This is a good step to get away from the consumer mentality and towards a savers mentality.

As for not having enough money to worry about wealth accumulation. Once consumer debt is gone any little bit helps. Thanks to compound interest, every bit you put away is working for you instead of against you.