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To: mishedlo who wrote (35373)	8/15/2005 10:38:57 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 116555

It isn't fair, it's a bait and switch scam: mediamatters.org Any sales tax is going to be much more regressive than an income tax. Which is why the GOP loves it. Gouge the poor and add spending power to the wealthy. The other big negative is how you apply it to the internet and people who live near foreign borders? You create an underground economy of enormous size with these types of sales rip offs.

To: mishedlo who wrote (35373)	8/15/2005 10:52:59 AM
From: KyrosL	Respond to of 116555

I think a federal sales or value added tax is a great idea. But not as a substitute for the income tax but rather as a tool to simplify the income tax and balance the budget in preparation for the boomer retirement. The advantages of a properly structured sales tax are obvious: first, it taxes underground economy income, second, it helps increase savings and decrease the trade deficit by discouraging consumption. Properly structured means that you exempt basic food and medicine and essential services; you can even hit luxury goods with a higher tax. This makes it essentially progressive. It also taxes mostly imported goods, further helping the trade deficit, without violating world trade rules. The European VAT, at around 18%, is one of the key reasons why European savings rates are so much greater than the US and why they are running consistent trade surpluses in spite of their structural economic problems.