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The problem with consumption tax is that it's regressive. Poor(er) people are hit harder with such a tax.
by shinryuu 3mo ago
The problem with consumption tax is that it's regressive. Poor(er) people are hit harder with such a tax.
- neonstatic 3mo agoDepends what is being taxed. Staples could be excluded, while luxury items taxed more heavily.
- snovv_crash 3mo agoSenate argument: "This poweryacht is necessary for my donor's livelihood of entertaining billionaires"
- fyredge 3mo agoThis argument kind of illustrates why consumption tax is better. It's easy to advocate "lower taxes for everyone!" giving rich people most of the benefit, but it's much harder to advocate for "lower yacht tax!" without pissing off a whole bunch of wage workers.
- snovv_crash 3mo agoHave you seen the US tax code?
- shinryuu 3mo agoGenerally agree here. The other question / issue here. Would a consumption tax actually bring in an equal amount of revenue? My intuition says no.
- satvikpendem 3mo agoThat's why the quote explicitly says "Instead, impose a consumption tax, designed to be progressive to protect lower-income households." Now how that's calculated I'm not quite sure, maybe they'd pull up your income details at every point of sale.