Tuesday, April 19, 2005

Glass half empty........?

The Elder posts about his preference for the flat tax over a national sales tax because a bump up in sales tax might send consumers scurrying for their local black market (I'll have to get one of those franchises). But is he missing the glass is half full side of that scenario? Eliminating income tax means the guy making $50,000 salary, comes home with $50,000 not $35,000, he can spend $10,000 in sales tax on various purchases over the year and still come out ahead. And as a consumer with $15,000 extra in my pocket you think I'm not going to buy that big screen TV? Consumption of goods would dramatically increase, at least in my household.

Here's another great reason........tax revenues will increase, think of all the drug dealers, pimps, and other nefarious job descriptions where no taxes are paid.....national sales tax....voila the criminal element now becomes legitimate taxpayers. It is estimated....international illicit drug business generates as much as $400 billion in trade annually now some of that $400 billion will come back into the federal revenue coffers because of a national sales tax. Will there possibly be a black market for goods? Sure...there already is...but Walmart & Target still seem to be doing fine.

And finally the IRS will not be needed, there's $10.2 billion added back into the budget. Eliminate income tax goto a national sales tax instead...it's a win-win situation....unless you're a glass is half empty kind of guy.

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