[FITZ]

Another inherent effect of a sales tax is that it discourages consumption of the item being taxed. So a 23~30% federal sales tax (depending on how you calculate it) would inherently stifle consumption in our "consumer oriented economy".

I think the problem with income tax now is that with so many people not working and with salaries dropping so they pay no taxes, the taxes are being paid by fewer and fewer people. A consumption tax seems like a better idea to me because it will encourage saving money and not taking out debt ---also it should help our large trade deficit when we aren't buying as many products.

[Willie Green]

also it should help our large trade deficit when we aren't buying as many products.

A revenue tariff serves that purpose better than a sales tax, simultaneously raising revenue and encouraging domestic lower-taxed production and employment.