Re: Flat tax blowback
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According to Neil, the flat tax would basically mean a 22-30% sales tax. I have yet to read the manual for this proposed tax plan, but I think it may have a practical problem for the economy. Our economy is ever-growing largely because of our consumer society and people's constant buy, buy, buy, spend, spend, spend mentality. 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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"Fair Tax" != Flat Tax.
It is much better than the current system since 1) it is more visible, 2) less time is wasted doing tax compliance work
However, I still prefer Ron Paul's Flat tax over it by a long shot, something like 0%.
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RP would have to institute some kind of national sales tax if he wanted anything like a balanced budget.
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The income tax provides about 40% of federal revenue. Paul would probably do things similar to what the LP would do after eliminating the income tax. reduce defense spending by at least half, pardon all non-violent drug offenders in federal prisons, which would enable the closing of half the federal prisons.
It would actually be pretty easy to balance the budget with no income tax. Well, at least for someone willing to return the federal budget to, say, 1960 levels.
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