Quote:
Originally posted by Lane
is the difference as big as 30+% as it is with the income tax?
what about the discouragement towards the personal expenses of middle-class people which is what drives the economy?
|
Actually, it would be at least 30%. The proposal is a 23% sales tax + 7% average exisiting state and local tax + whatever percentage the states use instead of income tax.
yes, there would be some discouragement to spend and more encouragment to save but todays savings is tommorow's spendings. Besides that a Harvard study estimated that 20-30% of consumer prices were due to income taxes. So prices should drop enough to balance out some of the increased sales tax.