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Why can't we have a universal sales tax nation wide and forget about income tax all together?

by  |  earlier

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It just seems to be the easiest. The more you spend, the more you pay. This may encourage saving money, rather than buying the latest gadget. This way each level of income is taxed accordingly. Sales tax for food, labor, etc. would have to change.

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  1. Guest4124: "The wealthy tend to amass wealth, not spend it all."  Why is that bad?  Why should they pay more taxes just because they are wealthy and choose not to spend their money?  A straight sales tax like this shouldn't be the only answer, but it should be part of it.  So in support of Guest4124's comment, real estate and investment taxes would still be necessary in my opinion.  Also, in response to Guest4124's entire second paragraph, a tax "burden" like the universal sales tax in question wouldn't necessarily ruin an entire economy.  What it would do is require consumers to shift their spending priorities (ie. do you really need a $200,000 house?), and subsequently require the economic suppliers to adjust to the consumers' new spending demands.  Guest6178: "When it is subtracted from your paycheck little by little, you don't pay attention to it. But if a $30,000 car suddenly adds $11,550 tax, that gets your attention."  First of all, I absolutely do pay attention to taxes that are subtracted little by little.  Second of all, I don't mind an extra 11k tagged on to a 30k car, because then you are faced with a decision: do I really need a vehicle with all the trimmings or can I make do with a less expensive one?


    Less money spent doesn't ruin an economy; it shifts its priorities.


    I'm not necessarily a gung-ho proponent of a universal tax, but I see a lot of benefits in it.

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