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Are you familiar with the term "progressive taxes"? Consumption tax is the same for multimillionaires and for people who have 3 part time jobs and struggle to
by 6t6t6t6 9y ago
Are you familiar with the term "progressive taxes"?
Consumption tax is the same for multimillionaires and for people who have 3 part time jobs and struggle to feed their family.
Then, imagine that you put a massive consumption tax for cards, for instance. What happens when the car of the 3 jobs guy is broken?
Also, how do you decide which products are the products that rich people buy and which are the products for "the poor"?
- icebraining 9y agoAlso, how do you decide which products are the products that rich people buy and which are the products for "the poor"? Congress did that by price - specifically, by imposing a 10% Luxury Tax cars over $30k. https://en.wikipedia.org/wiki/Luxury_tax#Luxury_tax_in_the_United_States https://en.wikipedia.org/wiki/Luxury_tax#Luxury_tax_in_the_U...
- ChrisBland 9y agoNot agreeing with OP but have studied this and want to provide color to it. Most of the proposals I've seen that promote a consumption tax deal with that by giving cash back to everyone in the form of refundable tax credits or block grants (yearly or monthly). They would figure out what the middle income person / family would consume, tie that to the CPI for those (breads, meats, consumables) and come up with the refundable tax credit amount to cover that persons estimated consumption tax.