To: Principled
Earned income credits allow many low income taxpayers to have no or negative income taxes. Consumption-based taxes based on a flat tax rate will result in a higher tax rate on those that spend most of their income on consumables, rather than those that invest a large part of their income, who are largely the more wealthy.
The money is going to come from somewhere. By reducing taxes that the wealthy pay - you MUST THEREFORE INCREASE the taxes that those who are not-wealthy would pay.
It's plain and simple logic. Which is why the Kool-Aid drinkers have so much trouble with the concept.
311 posted on
06/10/2005 3:09:16 PM PDT by
Fido969
(I see Red People!)
To: Fido969
Earned income credits allow many low income taxpayers to have no or negative income taxes. And the universal rebate portion of the NRST does the same.
315 posted on
06/10/2005 3:18:06 PM PDT by
ThinkDifferent
(These pretzels are making me thirsty)
To: Fido969
You don't know enough about the proposal to comment. The nrst in question does not tax non-discretionary spending. You didn't know that?
If you're poor, you certainly don't have very much discretionary income hence the net rate you pay would be less.
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