3 ms·
Consumption taxes penalize the poor, who spend most of their money on goods, and benefit the wealthy, who spend most of their money on investment. > Flat consu
by moistly 4y ago
Consumption taxes penalize the poor, who spend most of their money on goods, and benefit the wealthy, who spend most of their money on investment.
> Flat consumption taxes are regressive (shift the tax burden to the less well-off). The ratio of tax obligation to income tends to shrink as income increases because high-earners tend to consume proportionally less of their income. An individual unable to save will pay taxes on all his income, but an individual who saves or invests a portion of his income is taxed only on the remaining income.
https://en.m.wikipedia.org/wiki/Consumption_tax https://en.m.wikipedia.org/wiki/Consumption_tax
- verdverm 4y agoFirst off, wikipedia has biased opinions posing as facts Second, read the link I posted. Under a simple consumption tax, those at the lower end would pay more as a percentage of income. However, a system can be designed to alleviate this, much like earned income tax credits. Think beyond the shallow talking points. Not even mentioned is the impact on the accounting industry, which currently has a labor shortage. Our current tax system is overly complicated and has perverse incentives. We should be considering many alternatives instead of writing them off based on shallow thinking
- mcmoebius 4y ago"wikipedia has biased opinions posing as facts" but yet to bolster your position, you link the brookings institute. lol
- verdverm 4y agoThe particular link does not have significant bias and is a good conversation despite where it is published. Wikipedia is plagued by manipulation Perhaps try reading it, make meaningful statements or comparisons to further the debate, and not end your rebuttals with a childish "lol" You're still engaging in shallow thinking otherwise