Wednesday, September 9, 2015

A National Sales Tax, a Second Look

  I have always been opposed to a national sales tax as a replacement for the income tax (the fact that it tends to be regressive, mainly). But, honestly, the more that I consider it, the more that I like it. a) It totally gets rid of the I.R.S. (possibly the most virulent of the government agencies). b) It taxes consumption as opposed to savings, work, and investment (the latter three being the real keys to prosperity). And c) it provides people with at least a modicum of privacy..............................................................................................And it isn't as if the fairness component can't be addressed. I, for instance, wouldn't be opposed to a national property tax of about 5% on all property over $500,000 (so a rich person holding property of $5,500,000 would have to cut a $250,000 check to the Feds every year), or even a higher tax rate on big ticket items (though, yes, you do have to be careful here; the unintended consequences of the Bill Clinton luxury tax, for example)....Anything to get the conversation going essentially.

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