Tax consumption

[Axismaster]

I don't know why we don't just abolish all those damn taxes, shrink the government, and tax consumption rather than income. Seriously, it would help the poor because they would have a ton more money, and provide enough money because we know how much Americans love to spend. Let's just abolish that damn IRS once and for all. Indeed, this is the best way because it would go right into your purchases and you wouldn't have to fill out tax forms.

 

[Kandahar]

It depends on what kind of "consumption" we're talking about. We'd find ourselves in the ugly position of having to either tax anything you buy, or showing favoritism toward some industries by exempting them. For example, a sales tax increase on college tuition would make it prohibitively expensive for many people. The same goes for buying a house or car. And food and medicine are already out, since it can be argued that it would unduly increase hardship for the poor.

I'm not sure the government should be discouraging consumption. It may not be the wisest move from a personal financial perspective, but it certainly does stimulate the economy and increase our country's financial well-being.

I agree that drastically cutting and flattening taxes are a good idea, but I don't think consumption taxes are the answer.

 

[Axismaster]

It depends on what kind of "consumption" we're talking about. We'd find ourselves in the ugly position of having to either tax anything you buy, or showing favoritism toward some industries by exempting them. For example, a sales tax increase on college tuition would make it prohibitively expensive for many people. The same goes for buying a house or car. And food and medicine are already out, since it can be argued that it would unduly increase hardship for the poor.

I'm not sure the government should be discouraging consumption. It may not be the wisest move from a personal financial perspective, but it certainly does stimulate the economy and increase our country's financial well-being.

I agree that drastically cutting and flattening taxes are a good idea, but I don't think consumption taxes are the answer.

In many places, food is not taxed. It would most likely be a merchandise tax. Even so, it would not hurt the poor because they wouldn't be paying any income tax anyway. That is a huge chunk less, and if we controlled inflation, it would really help them good.

 

[The Real McCoy]

www.fairtax.org

Good stuff.