What do you think of a national retail sales tax?

[Urban Ranger]

Originally posted by Tingkai
A bunch of idiot Hong Kong politicians want a sales tax here.

They figure if the government taxes everyone, including the poor and 16 million tourists a year, it will mean the rich won't have to pay more taxes.

The accountants love the idea because it means more paperwork, and that means more work for them.

What do you expect? We are ruled by idiots.

[HershOstropoler]

Would this be a tax on all sales or final sales?

Some problems:

I doubt this rebate will create a progressive tax structure. So if you are not a fan of a flat tax, you may get fooled.

"Make American products more competitive at home and overseas. Encourage job-creation in America. Help reduce America's Trade Deficit."

I do not think this tax will have a big if any effect there. How should it?

"Used Goods and Education costs (ex: College Tuition)
are not subject to the FairTax."

So some tax subsidies will stay.

"Bring about a reduction of the cost of new goods and services by 20% to 30%."

A reduction? A sales tax may reduce the cost of wages, but that is slapped on at the final stage.

"yes but income tax is horrible in the U.S.
And there are so many exemptions."

A reform of income tax would be a better way.

[HershOstropoler]

Another problem: it's effectively a consumption tax, so it subsidises saving. Another distortion.

[MikeH]

VAT (the sales tax) is 17.5% in the UK. Doesn't apply to 'basic' food or childrens clothes or a couple of other things.

[Skanky Burns]

Asher: No.

[MikeH]

But no regional sales taxes in the UK.

[Dauphin]

VAT (the sales tax) is 17.5% in the UK. Doesn't apply to 'basic' food or childrens clothes or a couple of other things.

Like Jaffa Cakes. :yum:

[DuncanK]

Originally posted by Dissident
yes but income tax is horrible in the U.S.

And there are so many exemptions. Why should a woman with no self control get all kinds of tax credits for having 20 kids? screw that.

Not that anyone has 20 kids, but why shouldn't people get tax exemptions for raising kids. It's important work, and people need it.

[tandeetaylor]

I showed a lack of restraint last year, and had me a baby, and I got me a big fat return check. Ha ha Dissident!

[DuncanK]

National sales tax is just a gimic set up to shift the tax burden. Any rebate that would be included would just be a compromise. The wealthy would still end up benefiting at the expense of everyone else. It's their baby, and they aren't going to support it unless it benefits them. You don't see the democrates coming up with these things.

[Sava]

This is a plan by Conservatives to shift the tax base so that the rich and corporations pay even less taxes.

[Gangerolf]

VAT is 12% for food and 25% for other stuff here and still the income tax is high

[ixnay]

I find sales taxes annoying enough when I go to other states. No way in hell I'd want to have to put up with one on a daily basis.

[Jon Miller]

basd idea because it is regressive

only income or wealth shuold be taxed

Jon Miller

[Provost Harrison]

I agree, there should be a movement towards more progressive taxation. Besides there is the confidence issue; a lower price tag is psychologically better, even if you are just taking money elsewhere...