Quote:
Originally posted by Mmmm, Burger (C.J.)
No, because pretty soon all hte baby boomers who are socking it away tax free, will start pulling it out and paying taxes that would have been paid now.
Once it's fully implemented it would be revenue neutral, with only a shift from savers to dissavers who are paying. And everyone will be richer because of the stimulated investment.
Why do you focus on rates? I'll pay 100% of my first dollar.
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You'll pay 100% tax on every dollar consumed? I doubt it. You would need to earn twice as much as you consume to do that.
I think people *will* consume less and save more under this system -- which is what you want, but which will keep it from being revenue neutral. And you can't use the baby boomer people to boost the revenues from consumption tax, because either they've already paid tax on what they save (so won't have to pay consumption tax, or much of one, b/c of transition measures) or they'd be paying tax on it as income anyway.
