BackBayBerries wrote:
Meatball, your scenario only holds true if the sales tax is applied to every purchase. Currently, necessities aren't subject to sales tax...housing, food, utilities. So if a national sales tax were to follow the same logic as state sales tax, the $15k person would pay tax only on what he spends on non-necessities, many of which are one time purchases and not repeated year after year, such as furniture, electronics, cars, etc. If he makes no big purchases in a given year, he can avoid paying a large % of his income in tax.
Although imo, if there were a national sales tax, you would have to add clothing to the necessities list. You shouldn't have to pay tax on clothing, or at least on clothing that is under a certain dollar amount. For example, if someone wants (and can afford) $250 jeans, they can pay tax on it....but $30 jeans should be exempted.
eta: spelling
In any event, having JUST a sales tax is only the first step towards abolishing all taxes. I realize that taxes cannot be completely abolished overnight - it
will take some time.
Look on the bright side: getting of taxes, tariffs, quotas, subsidies, all kinds of non-defense oriented government services will increase real wealth, real prosperity, real wage rises and real increases in standard of living for everybody.
