To anyone that cares....and everyone should! A new idea being floated, by the egg head economists is a national sales tax. Hoorah! Sounds feasible, huh? A 30% tax on all sales and we will be forever free of the IRS tax codes. But say you have your eye on that new car. Typical mid size no frill vehicle of $20,000, just became $26,000. That seems fair, right? This is just one example of the lunacy a national sales tax would impose. Another aspect, that many do not seem to think of, is the demise of the incentive to create small businesses. One of the biggest reasons people go into business for themselves? Freedom to get beyond a burdensome tax code that works against you. With a national sales tax, this incentive disappears and without the incentive to create small businesses, where do we as a nation go? It has been demonstrated amply, that big business will not create the jobs of the future. No, a national sales tax would be a disaster for all of us. What do we need? Corporate tax reform! But the crooks in DC, do not have the chutzpah, (balls) to tackle this issue. We working class types, need to give them the courage to fight the special interest folks, that have created the loop holes by which corporate America skates past paying its fair share! How about debating this with me, or enlarging the scope of that which needs to be done? For instance, closing the loophole that gives corporate America, the incentive to outsource. That would be a nice start. Let us create a list of loopholes that need to be closed, then send this list to our heroes on capitol hill and let them squirm out of it!
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4 comments:
Persuasive argument though I doubt the tax could be as high as 30%. But the percentage of one's income given to tax for the car you mention is going to be higher for the poorer person than the wealthy person. Still the tax code has been tweaked for years to keep the wealthy on top and that code has become so complex and abstract that people have given up on it. The middle class has borne the cost of running the government but those costs are very well hidden from them. You've got your work cut out for you
Actually the 30% rate was the first one mentioned by the government. This was where I obtained this rate. Very true regarding disproportionate burden to poor, as well. As to complexity of code, this, believe it or not, more often aides the corporate world. As I said, they are the ones who are not paying a fair share. Corporate tax reform is a key to equitability, and the reason why this is so difficult to achieve is due to the fact, that so much money is spent by corporations to lobby for loopholes.
I never stated that a national sales tax would do away with the incentive to start a small business, it would take away an incentive to do so. Just as raising taxes decreases your ability to spend money, taking away incentives to think outside of the box (going to work for someone else every morning) would be a very bad thing for the American economy.
As to all the reasons you stated for going into business for yourself...all true.
But the headaches of being in business for yourself are monumental.
A national sales tax would also impede your ability to start a business by inordinately driving up the costs of everything you need to purchase in order to do so as well. (Machinery, equipment, cost of goods.) The assumption is that you just pass the costs of all this stuff on to the consumer...but if you are competing with outsourcing and foreign companies...which you will be initially...these costs may very well make your product so expensive, you will never be able to sell it at a competitive rate. As I said before in my original blog, corporate loopholes are where we need to start in order to reform the tax code.
Now with liberals behind the wheel, there is no point of opposing national tax, it is coming anyway.
Maybe channeling it, is something worth of doing. For example, instead of leveling poor scotch drinkers and cigar smokers, why not take on fat people. Tax Mickie-Dix and Chinese places. Let them have it "our way", let them outsource their nutrition someplace else. Then we all become fit again and will have enough energy and -what was this Idish word- to run our won business taxes non-withstanding.
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