[JeffAtlanta]

Um, dude, that would exempt some 70% of the economy. The tax rate on goods would have to be astronomical to make up for that, like 300%, and then people would spend even less on services...

This has already been hashed out - the plan is solid. Everyone buys something with their money eventually. There is no way that retail purchases only make up 30% of the economy.

[Somewhat Centrist]

JeffAtlanta wrote: This has already been hashed out - the plan is solid. Everyone buys something with their money eventually.

Well, yeah, but lots of people buy services. If goods is taxed, and thus suddenly becomes say twice as expensive relative to services, are you really telling me that consumption wouldn't shift drastically toward services? Why should one be taxed more for the service of making a chair than for the service of providing a massage? Wouldn't it make sense for government not to discriminate between various forms of labour but rather allow consumers to choose in an undistorted market?

And how aout expensive foreign vacations?

[Somewhat Centrist]

JeffAtlanta wrote: This has already been hashed out - the plan is solid. Everyone buys something with their money eventually.

Well, yeah, but lots of people buy services. If goods is taxed, and thus suddenly becomes say twice as expensive relative to services, are you really telling me that consumption wouldn't shift drastically toward services? Why should one be taxed more for the service of making a chair than for the service of providing a massage? Wouldn't it make sense for government not to discriminate between various forms of labour but rather allow consumers to choose in an undistorted market?

And how aout expensive foreign vacations?