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To: Tumbleweed_Connection

This whole national sales tax thing is silly. As much as I'd support it if it TOTALLY REPLACED the income tax, it just won't fly, and here's why:

If you tax a thing, you reduce it. It works with income to a degree, but people make money because they watch tv and have seriously nurtured an adiction to "stuff."


People would be somewhat more motivated to save their money rather than spend it, especially with a combined sales tax (in states with sales tax) that could easily approach 50%.

Television induced "Stuff Aquisition Syndrome" is what drives our economy. But massive tax at the till would curtail enough of it to create an economic catastrophy chain reaction.

If you tax consumer spending, but not income, you will get less spending. And less spending does not improve sales. Which would lead to layoffs and, ultimately, a complete implosion of our consumer driven economy.

The only way we will see a federal sales tax is if they keep all, or most, of the other taxes TOO.

In other words, it becomes a NEW tax.

No thanks...


31 posted on 11/12/2004 11:21:23 AM PST by RobRoy
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To: RobRoy
This whole national sales tax thing is silly.

Doubling the size of our economy is silly?

I'd support it if it TOTALLY REPLACED the income tax,

It does totally replace the income tax. It also eliminates payroll tax, self employment tax, capital gains tax, estate tax, gift tax, and it eliminates taxes on the necessities of life.

Under an nrst, our economy booms.

Go and search "economic impact. You'll see lots of research on the topic.

45 posted on 11/12/2004 12:52:27 PM PST by Principled
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To: RobRoy
The consumer base is twice the size of the income earning base. this is how we can lower what individuals pay in tax and still collect enough taxes. Production cost will also come down and therefore prices. Companies won't need armies of accountants and lawyers to keep track of paying taxes and deal with the IRS. They no longer have to withold nor declare their incomes (you either) hence the economy takes off.

People will be keeping 100% of their paychecks plus getting a rebate for food and medical expenses therefore have more to spend.

Your fears are unfounded business unfettered thrives, market forces have a proven track record!
52 posted on 11/13/2004 10:37:04 PM PST by hawkiye
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To: RobRoy

"People would be somewhat more motivated to save their money rather than spend it, especially with a combined sales tax (in states with sales tax) that could easily approach 50%."

The definitive economic study on the FairTax, which was done by Dr. Dale Jorgenson, does show a small initial net decline in consumption. That net decline is comprised of a significant decrease in the consumption of imports partially offset by an increase in the consumption of domestically produced goods. I seem to recall that the first year net decline is about 9%. The second year the net decline is less and by about the 4th year, consumption is back up to where it would have been under the current system. Meanwhile, the economy is exploding, with GDP growth of 10.5% the first year, slightly less each subsequent year and by the time the growth levels off, the economy is between 1/4 and 1/3 larger than it would have been under a continuation of the currecnt system. Meanwhile, the dramatically increased demand for US produced goods combined with the massive migration of capital back into this country that had been stranded by the old tax system produce a period of unprecedented economic growth. We are talking about rates of GDP growth that are substantially in excess of those experienced in the 90s.


76 posted on 11/15/2004 8:08:32 AM PST by phil_will1
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