[Doctor Stochastic]

So the proposal is to have both a sales and income tax. What about prescription drugs for the poor? Are these still taxed?

[APT Project Director]

With APT you have to stop and do the math. The answer to will a prescription drug bought by a poor person be taxed - the answer is YES - how horrible. But the $70 purchase will be taxed about 18 CENTS and NO FICA will be taken from his/her paycheck. If we can get the states to agree on a distribution system there would be no state sales tax and the tax on $70 would rise to 21 CENTS. If the nasty drugstore passes its share of the tax on the the customer it would be 36 CENTS (18 x 2). If cash were used, the store would pass their share on to the customer because they would deposit cash in the bank but there would be no tax on the customers side for the cash -- one side of a cash transaction is 44 CENTS. That's about every scenario and none are more than $1.

The no exemptions, no deductions policy recommended is designed to take a big bite out of outside influence on politicians.