Once Considered Unthinkable, U.S. Sales Tax Gets Fresh Look Levy Viewed as Way to Reduce Deficits, Fund Health Reform With budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax. http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052602909.html
Dex216, this sales tax idea is it not like the value added tax currently in use in Europe? Is a tax added to a product in each phase of a production process? I wonder how will this affect those on the lower end of the economic ladder. Dex, could the solution be if President Obama selects this idea to fund his health care initiative is to implement this new tax approach, but to eliminate the income tax rather than having both a value added tax and income tax at the same time. Or eliminate the income tax at the lower income ladder and implement the sales tax only for that group of tax payers? Dex, what do you think?
I think that if we're gonna increase spending, then only solution to pay for it would be to have a sales tax. Just increasing taxes on high-income earners will not pay for everything the administration wants. Now, depending on what the sales tax rate would be (10%, 15%, or 25%), you might be able to eliminate the income tax and just have the sales tax. We'll see though
Thanks Dex. I understand there is much interest in this and the Fair Tax. A new tax system is gaining steam throughout this country. A move away from the income tax. The problem still remains that politicians do not want to change because it takes away their power. It's going to take a tax revolution in this country in which the common man and woman will have to finally band together and get rid of those politicians who want to control us.
