Quote:
Originally Posted by msav111";p="
I worry that a large sales tax and no income tax would severely hurt the economy. Doing so would encourage people to save their money, hurting the businesses, peole's salaries, and unemployment.
In the long run I'm betting only the rich would gain from this since they spend less as a percentage of their income than the poor. Also top management jobs are the last to go in a failing company. I'm pretty indifferent on the idea in general though...
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The rich spend a ton of money and if they were taxed fairly they would spend even more in the US. Companies would prosper and could hire more workers and pay higher salaries. Penalizing the top bracket by higher income tax causes many of the rich to look for the loopholes such as off shore bank accounts.(not saying that those tactics are right)
Some jobs would have to go--the huge bureacracy that is the IRS.