Quote:
Originally Posted by red-beard
All correct, except for one thing: Corporate taxes also reduce the ability of USA manufacturing to compete in the world. Those taxes end up in the price of the product, whether used here or exported.
And products produced in low tax countries, do not pay taxes, except tarrifs, in the US.
Zero corporate, income and payroll taxes = lower final price on products, products can compete worldwide
Sales tax on ALL products means that even if you buy a product built in another country, taxes are paid to the US government. Make the playing field level here. Right now it is tipped, the wrong direction. If we make a national sales tax law, the field will be tipped to OUR advantage.
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All this talk is useless without numbers. Run the numbers. We did, in some of the previous threads on the FAIRTAX proposal. IIRC, a national sales tax would have to be around 40% to be revenue neutral. What would a sales tax of 40% do to consumer demand? Let's see, the average effective federal tax rate is about 20% (that's all federal taxes including SSI I think). So, get 25% more in takehome but pay 40% more for what you buy? Hmm, this rewards people who don't spend much. So, consumer spending will go down a lot. And this helps the economy? Hey, at least those of you working for consumer products companies, and the industrial/materials companies who supply equipment and materials for those companies, will have a lot more free time. You can have a reunion in the unemployment line. Reminisce about how great PPOT was, before PP went under due to huge price increases.