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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (222394)	3/7/2005 5:35:26 PM
From: TimF	Respond to of 1575627

The one objection to a consumption tax that is based on pure economics is that it would require a higher tax rate in order to raise the same revenue as the income tax. That is because saved income is gone from the tax base. Saved income is gone from the tax base, but some saved income already doesn't get taxes. Plus you would lose mortgage deductions and other deductions. If you don't excempt food, medicine and other "essentials" than the tax rate might be lower that the average income tax rate and will certainly be lower than the highest current rates. If you do make such exemptions that it depends on how the exemptions are set up. Tim