Replies

Hmm I like the Idea, I really do. And further more I am for it! I would love to get a 25% to 30% pay raise (I mean who wouldn’t?) but I do have a question though that I haven’t found a readily available answer for. As I understand it one would only pay taxes on things at the retail outlet or its equivalent. So lets say I buy a house, car or gun “new” and I pay taxes on them, then a couple of years later I sell the house does the one who buys it pay any tax, as I understand it no, same for the car and gun right? Then would this be the result a decrease in demand for new goods and an increase in demand for used ones? What effect would that have on the manufacturing end of our economy?
However thinking about it I guess there might be an initial negative effect, but would that straightens out over time?
And about this 20% to 25% in prices I really don’t think so. Yes, yes I understand the math but your not taking into account the human factor, GREED in effect your telling everyone from the small business owner to Exxon and GM that if this went through by just keeping prices as they are, or maybe just a small 5% or 6% drop for show, that they would see up to 20% in crease in profits!
I prefer to look at it this way, say this goes through “the man” stops getting in my paycheck therefore I get a say 25% raise but so what if prices do stay the same I’m still bringing home 25% more $$$ I’m still happy, corporate America is happy because their profits go up lets just say 20% and lets say half of that goes into investing in more business and better raises ( don’t laugh to hard ) and because people like me have more money we spend more thus increasing demand so since they have the money and the demand they create more jobs.
All this sounds great and like I said earlier I’m all for it but I would like to see a couple of safe guards included like once enacted it in order to raise it would take either a super majority in both houses and the presidents signature or a national referendum or in the event of a formal declaration of war it could be an automatic 5% or something like that.
I know that there is no perfect form of taxation and there will always be those who will find ways to circumvent the system but I do think that this form of taxation is straight forward and much fairer than the others

" And about this 20% to 25% in prices I really don?t think so. Yes, yes I understand the math but your not taking into account the human factor, GREED in effect your telling everyone from the small business owner to Exxon and GM that if this went through by just keeping prices as they are, or maybe just a small 5% or 6% drop for show, that they would see up to 20% in crease in profits!"

You're forgetting something very important. COMPETITION.

If a business does not drop prices in relation to lower costs, others will move into the market and take their share by offering lower prices. The same with an employer who doesn't increase pay for his employers, if there is a demand for that worker, another employer will hire them away. Competition in the marketplace will address all of your worries.

Trust the market, not government.