Quote:
Originally Posted by red-beard
Zero out corporate taxes. Zero out income taxes. Go to a sale tax only system. Businesses will flock here. Reduce the cost of energy, etc. We are doing exactly the opposite.
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(I added bold)
Sales tax only system eh? Remember the threads about FAIRTAX?
Like
http://forums.pelicanparts.com/showthread.php?t=385861&highlight=FAIRTAX
As far as I could ever figure out, the idea of replacing the current tax system with a sales tax simply doesn't work. The sales tax rate would have to be so high, like 40%, that it will destroy demand while leading to a huge tax avoidance/black market problem.
It looked like FAIRTAX would have been good for me personally, given the exclusions proposed (yes, the FAIRTAX proposal had loopholes too), my general lifestyle, and the fact that I live close enough to the Canadian border that I could go buy my high-value/low-bulk items there. But for the country, it would be a disaster.