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]

In theory what you say is true. Business, especially corporations are notorious for ignoring theoretical ideals.

Reagan, Bush senior and junior all cut taxes, created loopholes and eased other corporate burdens everywhere they could and yet our economy is still rampant with unemployment and high prices. What's up with that?
What you speak of is a polished off version of "trickle-down" economics. It didn't work before, what makes you think it will work this time? What, we didn't give big business enough tax breaks? Why should we give them more when they didn't "trickle" down the ones they already got? I agree that taxing corporations theoretically hurts the poor and as such, the only way to alleviate the burden for the working class and the poor is to lower (or eradicate) their taxes. Hmmm... the poverty level people in USA already have no tax burden, but now we want to get rid of that idea?

I don't see it. If you want tax breaks for the average working joe, then lower taxes for the average working joe - what's so difficult about that notion? To eliminate taxation for ALL businesses (mega, large and small) is just foolish. The revenue lost will not be made up by the sales tax because if people in this country cannot afford the taxes they pay now, how can they possibly make up the taxes businesses aren't paying?
Free market competition? Feh, business that lose revenue will merely take their products overseas. Without any taxation to hinder them, it's much more attractive than trying to get broke Americans to buy stuff. For that matter, they'll take even MORE of their manufacturing overseas as well. Every time we lower corporate tax, all that happens is corporations get richer and everythign else is BAU.

[terminalwriter.livejournal.com]

It has worked historically.

Kennedy dropped income taxes in the 60s and there was a boom.

Regan did it again in the 80s and there was another boom period then.

This time around, it has been slightly different; however, that has been due to the excess of capitol investment in the 90s that is finally getting around to being used properly, jobs started to turn the corner, then unfortunately slowed down due to the high price of oil. (Which is partially due to us being in Iraq, but has several other factors, including strikes by oil workers, greater demand due to us using less fuel efficient vehicles, greater demand in emerging markets like China and a major exporter for Russia is in trouble for tax evasion) Jobs are currently being added and have been for seveal consecutive months now, albeit at a slower pace than at the start of the year.

As for rampant unemployment, we are currently sitting at a 5.6% unemployment rate, which is low for almost every period in history, excluding the late 90s. (For years 6% was considered full employment.) And with high prices, up until the past few months, the Federal Reseve has had concerns about deflation, not inflation. Prices, excluding energy and healthcare, have been pretty much stable for the past three years. Energy prices will correct themselves. Or alternatives will be found. Healthcare is another matter entirely, because people will always be willing to pay for it no matter what the price. Unfortunately, I cannot think of a good solution to that issue.

This is about simplifying and making the tax code transparent. And actually with the refund set up in the Fair Tax, lower income people will actually be bringing in more:

http://www.fairtaxvolunteer.org/smart/faq-main.html#48

The companies aren't paying the taxes they have now, they are passing them on to the consumer as it is.

[terminalwriter.livejournal.com]

Also, more taxes will come in from sources that weren't previously being taxed. Illegal aliens, workers paid under the counter, money made from illegal activities: all those folks will still buy things, and they'll pay taxes by using there money when they weren't by earning it.