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

[not-hothead-yet.livejournal.com]

The Fair Tax proposal clearly states that business-to-business transactions will not be taxed. Eliminating corporate income tax, business income tax AND all business-to-business sales tax means businesses no longer pay ANY tax. Oh I really love the idea of businesses savings TONS of money while I save a tiny amount. What makes you think they will pass that savings on to me??? What incentive do they have to do that? I'm going to buy certain things (maybe not necessities but "happy" things) anyway. In the current economy, people STILL pay $5 for a delicious cup of special coffee. Why should the coffee shop lower the price once they are keeping more of their money?

[terminalwriter.livejournal.com]

Becuase, unless they do, people will take their business elsewhere. If your only tax is on purchases, won't you look harder for the best price when you're dealing with a 25 - 30% tax rate? You've gotta get the most bang for your buck and companies unwilling to do that will learn very quickly that they are not going to get the sales.

[gmslegion.livejournal.com]

In addition, it's not like the lowering of the base cost will be any big secret, kept from the great unwashed masses. It's one of the principal selling points of the fairtax. If it ever comes to pass, every customer who wants one of those cups of coffee is going to be asking the staff "So, isn't it time you lowered the price to coincide with the new sales tax?"

[polychromatic22.livejournal.com]

"What incentive do they have to do that?"

incentive = Wanting to sell more of their product and thus make more money than their competitors.

[not-hothead-yet.livejournal.com]

which they could do by selling overseas.

[polychromatic22.livejournal.com]

Which also costs more money. Shipping really does increase costs.