Re: Flat tax blowback
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Neil?
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Do you not think the psychological effect of a 25 or 30% sales tax would make people less willing to shop as they currently do? This may be good if people actually invested this money instead, but nonetheless it would be bad for the economy.
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The idea that people not spending money would be "bad for the economy" is a blatant lie perpetuated by those who benefit from the masses burning all their money on crap. It would be bad for the "economy" of corporate America, but it would be amazing for the "economy" of the average American.
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I suck at the search feature but Boro had a post in EDF or the Lounge awhile back on the basics of Austrian econ and there was a cool part in there about why savings is actually good for the economy. At least when compared to artificially changing interest rates and the money supply to encourage spending.
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