March 4, 200521 yr Finally something of substance will be posted on this forum. Greenspan's statement about consumption taxes vs. income taxes is defintely something that will be looked at, and if major tax reform occurs, this could be really big. The last reform of the tax code came in 1986, thats 19 years ago. Here are the articles: http://www.foxnews.com/story/0,2933,149298,00.html and the direct text of his statement: http://www.foxnews.com/story/0,2933,149304,00.html
March 4, 200521 yr I think I would be in favor of a national sales tax and cutting out the income tax ... however, i'm not sold on VAT, I think that could be overkill and could cause an inflationary environment recently it's been an option on taxes, that if your sales tax withheld is greater than income taxes withheld you can claim the deduction off your sales tax ... looks like there are some steps going into this i also don't see how this would hurt the poor ... if anything it would help ... the rich who use savvy investments to twist income and claim deductions wouldn't be able to hide from their purchases .... the poor most likely wouldn't end up paying more than what they currently do in income taxes transition is hard and the gov't may lose out on the nice short term loan of income taxes in theory though, i think i like it
March 5, 200521 yr The good thing about tax reform is that at least both parties in Washington can agree on some things. I'm not certain how I feel on the consumption tax. It's still regressive, and unless you exempt certain kinds of goods, a big sales tax on $200 of groceries hits a poor person a lot harder than it does a rich person. And though I don't think you should be punished for making a high salary... there are some issues that have to be worked through.
March 5, 200521 yr The good thing about tax reform is that at least both parties in Washington can agree on some things. I'm not certain how I feel on the consumption tax. It's still regressive, and unless you exempt certain kinds of goods, a big sales tax on $200 of groceries hits a poor person a lot harder than it does a rich person. And though I don't think you should be punished for making a high salary... there are some issues that have to be worked through. 702624[/snapback] I think we should have a sales tax on essentials like food, clothes, etc. Then a seperate sales tax on everything else. Make it into 2 categories.
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