[quote]Headhunter wrote:
[quote]AdamDrew wrote:
Taxing consumption is the fairest way to tax the people. 2 big advantages to this are: 1) everyone pays-illegals, drug dealers, people getting paid in cash under the table. The only way to escape it is by growing your own food or bartering, which are both good things imo. Americans need to return to creating goods and services themselves instead of going to Walmart when they need something. That is why this depression is so different from that of the 30s. People knew how to make and grow things back then and could still take care of themselves in times of trouble. Now we rely on unemployment. 2) Generally, consumption increases with income. Therfore, taxes are proportional to income. There are exceptions to this, grannies hiding millions in their mattress etc. None of this matters. Govt will get bigger and taxes will go up. I guess I have a defeatist attitude. With the mainstream media demonizing the Tea party movement which is simultaneously being taken over by the Republicans, can you blame me? i definitely don’t see a fair return on my taxes. I am young and healthy and that’s just the way it is. Cances are the money I have paid in won’t be around when I am the one that needs help. [/quote]
This would make taxation more voluntary than the government can allow. In a recession/depression, people reduce their consumption thus reducing government’s income. Thus government would have to reduce transfer payments. Too many people are bought off by the nanny state.
Consumption tax as the main source of government revenue went out in 1913. We can’t be super power, be a nanny stae, and have wars if we have a revenue stream that is in such flux.
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Federal tax income is reduced during a depression/recession under the current system as well. People get laid off and income tax dollars received plummet. In either scenario, our govt. needs to be more conservative with their budgets. The word “surplus” has been banished from their vocabulary apparently. “Too many people are bought off by the nanny state.” Amen! “Consumption tax as the main source of government revenue went out in 1913” Is this referring to the Federal Reserve Act? I don’t want to be a super power, nanny state, or have wars. I want to live in a country that has a good standard of living (check), is self sufficient (nope), and a role model for the rest of the world (nope).