OT
I like the idea of a sales tax, but I understand how it is in some ways problematic.
One problem the Cato article you linked to doesn't address is, what about all the people who paid income tax for a long time, but managed to save after tax, now they are retired, and have little income, so pay little tax, but they have to live off their savings, and now they are going to pay taxes again when they spend.
Basically I like the idea, but the transition is really difficult and problematic. And if you try to soften the transition by ramping down the income tax over many years as you ramp up the sales tax, who's to say the income tax will keep ramping down and then go away? For a long time you would have both, and you would risk permanently having both. |
