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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?


To: Neocon who wrote (24346)7/13/2000 10:12:55 AM
From: Bill  Read Replies (2) | Respond to of 769670
 
Under a flat tax, the disincentive function would be eliminated.

Only to a degree. Higher producers pay more tax than lower producers. If I work 60 hours per week, and you work 30 hours, I pay twice as much as you. This, despite receiving the same level of government services.

A sales tax system taxes only consumption (as opposed to productivity). So if I work twice as much, I can pay the same as you if we spend the same amount. My added productivity goes directly to savings.