No matter how the tax is calculated, they will end up taking in just as much money. They have to. Taxing sales, instead of income, will just cause rich people to save more, spend more money overseas, and otherwise ensure that we aren't putting money back into our economy. It's just an attention-getting tactic since everyone hates income tax.
In the UK, they have a 17.5% VAT on almost everything, and still have the same ~30% taxes that we do in the US. So, what's the plan? Maybe a 35% sales tax? How is that any better than a 30% income tax?
|