Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: EPS who wrote (52464)	9/13/1998 8:17:00 PM
From: Elroy Jetson	Respond to of 58727

Not a bad review of the history of monetary and fiscal policy in Japan. Congress can inflict the same Depression causing knock-out punch to the US economy by replacing the Income Tax with a Consumption Tax. This will eliminate the Consumption portion of the economy which is the last thing keeping it going. Interest paid on home mortgages will no longer be tax subsidized. Sales of homes will no longer be exempt from $500k of taxes but will incur a consumption tax (estimated at 15% to 27%) on the entire sales value. Just like Japan, the real estate sector will crash wiping out the largest portion of household capital. Taxes on securities sales will fall from 20% to zero, but reduced corp earnings from reduced consumption would finish off the stock market. In spite of the obvious danger of a consumption tax, it has strong backing from Congressmen like Newt Gingrich who have little education in economics. I can't wait to see if the Congress destroys the US economy through new tax policy as Japan did to their economy. Time will tell.