Quote:
Originally Posted by MaDalton
i think it sounds like an acceptable plan - it just needs numbers to see if it could work
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The numbers would be tied to spending... so setting the numbers would be fairly simple based on tax returns and spending from the prior year. I'd even favor some sort of balanced budget agreement if this was our tax system. Since virtually every person would be paying the sales tax rate and many would be paying the income tax portion, any move to raise those rates would be met by strong resistance from voters unless the expense made sense.
Someone earning one million dollars and banking 800K of it would pay much less in taxes than someone earning one million in 'investment income' and spending 800K of it. Meanwhile a guy who earns 40,000 and saves it or spends it on 'tax free' items like basic food for his family would pay zero taxes. A guy who earns 40,000 and spends 32,000 on flat screen televisions and a luxury car lease would be paying the same tax on his flat screen television as any wealthy person with the same television.
Seems awfully simple and effective.
