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To: Libertarianize the GOP
How about deflation because a National retail sales tax will discourage consumption and encourage investment.

None of the sales tax proposals are "retail sales tax". The national sales tax proposals are a tax " of the gross payment" (including itself) and NOTHING is exempt. A 23% "sales tax" would increase prices by 30% ....That means rent, leases (including vehicle leases) haircuts, lawyers fees, insurance, government services, public utilities, tolls, lawn maintenance, even (beleive it or not) interest paid and interest earned is taxed as well as taxes and fees imposed/included in the gross payment...There's a tax on gambling and the REAL bugaboo is a tax ON the "wages, salaries and benefits of "ANY" (local, state, federal) government employees....

You may think it will "encourage investment" but the "revenue neutral" sales tax proposals would leave little disposable income for investing. Your earnings would be nothing more than taxes yet to pay.

8 posted on 07/26/2002 11:36:21 PM PDT by lewislynn
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To: lewislynn
fairtax.org
16 posted on 07/27/2002 3:42:12 PM PDT by Libertarianize the GOP
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