patrick.net

Then what?
Would you prefer a 30% sales tax on everything?
I wish the Moron generation would stop fucking the American government and the Democratic process. My feet would get sore if I had to wear, knee high Commie boots.

Yes. 30% sales tax is better than 30% income tax. That's fairly obvious to anyone who earns a paycheck.

Imagine this, I make pet beds in south Georgia. I sell a bed to Wal-Mart or such for $6/hr. My competition makes pet beds in China and sells pet beds to Wal-Mart etc for $6. Now, I have to pay my employees as well as absorb about 8% tax. My employees have to absorb 20% income tax or something like that depending on their family income, deductions, etc.

So, both my company and the supplier benefit from the USA government. 40% of the employees at wal-mart or such receive some sort of government assistance. Buy hey! Who pays for that? Not my competitor in China. Nor his employees. I pay for that. And my employees.

What's more, the whole economic system, police system, world-military protection, and other benefits paid for by USA taxpayers benefit my company and that of my competitor. Who pays for that? Not my competitor.

So, would you prefer me to pay a 30% sales tax or a 30% income tax? Surely you can see that the latter taxes Americans more. HAve you never runa company, even a single person company? And surely you can see the former imposes the tax load on my competitor company in China as well as my company in the USA. So, are you saying you favor the communist system of China and believe Americans should be punished for working in America and foreign companies continued to be given a free lunch at the cost of Americans?

This would also shift tax burden from younger to older people. AARP would crap all over this. It would however allow the gov't to effectively cut social security payments (buying power) without actually cutting social security payments (nominal).

Melmakian says

The only way to impose such a thing on consumption at such a high rate would be via a VAT, where the tax is applied through each stage of production/distribution.

Don't even go there.