Quote:
Originally posted by Mmmm, Burger (C.J.)
I don't think what I've been saying is necesarily in tension with any of your goals. You seem to be stuck on the idea that consumption tax=flat tax. That's not necessarily the case. That may be the cheapest to administer (or it may not), but one could use the current income tax system but shift the tax burden to those who consume, and particularly those who consume a lot, and have it just as progressive as the current scheme (although, sure, it would benefit those who save more than those who borrow for consumption).
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If we only tax consumption, tax rates are going to have to be higher than tax rates are currently. Unless you make the rates more progressive, that's going to translate to a greater proportion of the tax being borne, as a group, by people at the lower end. If you leave it at the same rates as it is for lower income (but now would be consumption) groups, and raise the hell out of the rates for high levels of consumption, I'd be more OK with it.
I wonder what overall effect this will have on our consumer economy, though.
