Quote:
Originally posted by taxwonk
Everybody should ignore the principle of taxing consumption rather than income. Consumption taxes are not merely regressive, for people living on a subsistence level, they are confiscatory.
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Neither ineluctably follows. They need not be regressive, and they certainly need not be confiscatory, any more than current taxes are at least.
Please be sure to recognize the distinction between the concept of a consumption tax and the implementation of one type of consumption tax, known as a sales tax. The latter is the consumption based alternative of a the flat income tax, which should help to highlight that the problem lies not in the basis for the tax but rather its implementation.
