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Abolish all of the tax code, pass a federal sales tax, almost entirely do away with the IRS, much more efficient - the end.
by ryanmercer 7y ago
Abolish all of the tax code, pass a federal sales tax, almost entirely do away with the IRS, much more efficient - the end.
- dlp211 7y agoThis would be the absolute fastest way to shift the federal tax burden from the top 20% to the bottom 50% and would likely cause consumer spending to plummet resulting in a recession. It's also a very nice way to punish lower through upper middle class savers. This may be an ideal solution in theory, but it would likely be devastating in practice.
- ryanmercer 7y ago>This would be the absolute fastest way to shift the federal tax burden from the top 20% to the bottom 50% Bezos bought a 65 million dollar jet... at 20% federal sales tax that would have been 13 million dollars in revenue. He would pay more in taxes in one purchase than I'll earn in gross income in 10-13 lifetimes. I paid a bit over $8000 in w2 employment taxes last year (21.8% of my gross income, with a 20% sales tax I'd have MORE money and yes, I would buy less crap I don't need and use once), in one purchase Bezos would have paid 1974x what I paid last year. Never mind that under most federal sales tax proposals, a flat-rate rebate is issued monthly, quarterly or annually to everyone which greatly softens the blow for the lowest earners.