Arguments For: Consumption taxes simplify and make taxation fair for everyone
Arguments Against: Consumption taxes will raise taxes on the poor and lower them for the rich
Discussion Point: Suppose a consumption tax policy were enacted to replace all taxes
It’s better to “Soak The Rich” and “Spread The Wealth”
Since rich people make more money, they should pay more in taxes. It may not be “fair”, but they benefit more than the rest of us. Let’s go back to the old tax policy!
Please Define “The Rich”
Exactly who is “The Rich”? Old school definitions had anyone netting a million dollars per year (a so-called millionaire) as a “rich” person. This was over 20 years ago, so with cost of living adjustments that same definition would be about three million in today’s dollars. That’s a far cry from the $150,000 gross reported income floated in the last presidential campaign.
Punishing the Highest Producers?
Progressive tax policies are grossly unfair and penalize the highest producers in a market economy. The most productive people pay the most tax, thereby robbing them of the incentive to produce even more. As these tax rates rise, they produce a disincentive to produce (i.e. production falls).
Nothing could be Fairer
The old progressive tax system was so unfair! It provided disincentives for higher income brackets and gave a “free ride” to those in the lower brackets. This new consumption tax is no different than the sales tax we paid before it’s just higher. However we pay the exact same amount in taxes. And there are no income taxes! Further, The “Rich” can no longer take advantage of loopholes.
Let’s See what we’re Really Spending
A consumption tax would have to be large enough to cover the yearly expenditures at a minimum. As such, it would expose the true amount being spent by government. This would help to raise awareness and more fiscal responsibility from the citizenry when they are reminded just how “big” government has become with every purchase!
Say Goodbye to Complexity
No more tax forms to fill out. No more struggling with our conscience when reporting income. No more alternative minimum tax penalty. No more time spent trying to gather “deductions”.
Proposal: Coming soon.
Why this is a reasonable compromise: Coming soon.