False conclusion: you have the option of not buying the coke and, therefore, not paying the sales tax. Try not paying your income tax.
The retailer, bottler, sugar cane farmer, shareholders in Coca-Cola, etc are paid in after-tax dollars!
This assumes an income tax exists... the point was to get rid of it and all of the supporting documentation, etc. surrounding an "income" tax.
Another advantage is that *all* money is taxed at the same rate rather than just income. This invalidates tax shelter scams, social engineering via the tax codes by whomever is in office, tax credits that politicians write for themselves etc....
Basically, it's long overdue.
I agree. It taxes spending instead of income. This makes sense to me. I also think it would promote saving. You, in a sense, decide how much tax you pay by how you spend or save. So those who have more expensive taste, and want to live a higher lifestyle pay more. And those who wish to save their money, pay less. How does this effect investment? And how would it not raise the price of products?