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To: groanup
The states themselves may be where the final impetus comes from.

Could be. I know the folks I went to see prior to the election were all about the "Georgia Fair Tax". That, of course, doesn't mean they'll do anything about it - but it does mean they know it's on our minds.

After they get booted for not following thru, the next folks will be more likely to take some action.

11 posted on 12/19/2006 3:55:15 PM PST by Principled
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To: Principled

The interesting thing about a State replacing Income Taxes with an expanded Sales Tax base is that people are unlikely to cross State lines to avoid it.

That's because most States' Sales Tax excluded items are services, groceries, medicine, etc. and that is what a lower-rate Sales Tax would expand to cover. While some people will shop across the State border to save $50 in sales taxes on a big ticket item, I doubt many will do that to save $1 tax on a haircut, groceries, etc.

California could lower its sales tax to 7% on everything, no prebate, and it would bring in more revenue than the Income Tax + Sales Tax currently does.


26 posted on 12/21/2006 4:58:33 PM PST by Kellis91789 (Sarcasm should never need a tag.)
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