Quote:
Originally Posted by wishepherd";p="
What if the tax system was changed not to a flat tax but a flat sales tax. Say 14% it would be more of an income tax than an income tax is. The wealthy who want there Mercedes and BMW's would pay a higher premium to get them. With this we would have a much better system in my view.
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The reason why it will never happen is that those with large incomes will never stand for paying more. The Tax Reform Act of 1986 under Reagan was a very fair tax plan, but it was gutted within a short time because of the minimum tax provision. The wealthy were mightily peeved at having to actually pay the minimum tax. It more than doubled my tax liability in one year, and it hit a lot of people much harder than it hit me.
Same with a consumption tax. You have any idea what that would do, on top of a state sales tax, to those with large disposable incomes? If you could demonstrate how they could mostly avoid the tax by leasing all their possesions from their own closely held offshore leasing companies, you might find a little support, otherwise forget it.
Oh, and the working poor, such as the enlisted folks in the military, you know, the one's busy defending your freedom, who either pay no tax or get an earned income credit would also get hosed down as well from a flat tax.
Otherwise, great suggestion....
oc