[elbucko]

Is a sales tax the best way to tax consumption? Notwithstanding some enforcement concerns, my answer is yes.

Oh really? Analyze this:

"The Omnibus Budget Reconciliation Act of 1990. Controversy arises from ambiguities in the determination of tax liabilities for the automobile, boat, aircraft, jewelry, and fur industries."

Portions of, and finally all of this "consumption tax, had to be repealed because it was a job killer. Companies that made boats and private aircraft had to lay off skilled craftsmen. Whole companies had to declare bankruptcy. If you people think that the NST is the road to tax payer nirvana, you need a new Guru.

[numberonepal]

The Omnibus Budget Reconciliation Act of 1990.

This was on top of all coprorate and earnings taxes. Apples and oranges.

[kellynla]

You're mixing apples and oranges.

You're referring to a VAT and I'm talking about a NST.

Mfg's would not be responsible for NST, only the retailer who sells the merchandise.

If you eliminate a companies' income tax, you lower their cost of operation...hence more American companies are more competitive with imported goods .

[Principled]

Portions of, and finally all of this "consumption tax, had to be repealed because it was a job killer. Companies that made boats and private aircraft had to lay off skilled craftsmen. Whole companies had to declare bankruptcy.

Of course it was a problem. The luxury tax was an additional tax. The nrst replaces existing taxes. The luxury tax was levied only on certain items - the nrst applies to all.

The nrst and the luxury tax are as different as night and day.

The luxury tax increased the cost of goods. The nrst doesn't.