Quote:
Originally posted by bilmore
I can see a lot more danger of unintended consequences if we get into a consumption tax that allows for targeting. A higher rate for the purchase of luxury yachts? Caviar tax of 40%? The social engineering aspects - at least, the possible abuses of them - are staggering. Plus, the tracking system is harder. I can spend my money at a lot of private outlets that don't have the pressure to report as does an employer who must report the payment of compensation in order to get the tax break associated with the payment of an expense.
|
Um, no, he's saying that at the end of the year, the last $1 you spent will be taxed at a higher rate than the first $1. People who buy lots of expensive stuff will spend more $$ and their overall tax rate will be higher.
Remember, we are taxing income minus net savings, not taxing at the point of consumption. He's not talking about a VAT or sales tax.
I'm actually OK with Burger's thing, as long as we aren't raising taxes on people who spend pretty much their entire income on basic things like food and housing and clothes from e.g. K-mart and Target.
