Quote:
Originally Posted by mynameisjim
The two biggest issues aren't even with the numbers. It's the side effects a national tax would have.
1) Employers would use the national tax as an excuse to pay a lower wage.
2) Underground markets would sprout up everywhere. As it is now, generally only the poor operate in underground economies. But with a national sales tax, even the middle and upper middle class would be interested in saving 15% by buying products from a black market. I KNOW FOR A FACT everyone on here would be talking about the "great deal" they got by not paying taxes for this or that because of their special connection or whatever.
The flat tax reminds me of what happens when think tanks come up with solutions. They make sense on paper but make no common sense.
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Totally agree. It would be a battle of ethics, not numbers. The thing I think people get so up in arms over is they don't realize that their tax burden is actually going to be MUCH less by having people who aren't currently paying taxes step up and pay some. On paper, like you said, I personally think it makes perfect sense.