Regarding the national sales tax...

[Starlight]

I posted this earlier in the general forum but most of the respondents seemed to miss the point of my question so I thought I might get some more relevant answers here. Here goes:

Why do Bush & other wealthy, right wingers believe it would be in their best interest to eliminate other taxes & replace them with a very steep (I've heard 20-30% suggested) sales tax? It seems to me that this would amount to cutting off their nose to spite their face. :P

It's obvious to me that most people would cut WAY down on their discretionary spending, reduce/reuse/recycle & make a lot of their remaining purchases through alternate channels to get around paying this tax. I know I would. IMO this reduced consumption (not the sales tax) would a good thing, but huge cutbacks in spending, or even moderate cutbacks, would cause a rapid decline in our consumption based economy and stock market. Why would these people who depend so much on sales & corporations & stock holdings favor such a plan? Are they really that short sighted? Or am I missing something? :shrug: Comments? Insight?

[Indiana_Dem]

1. I don't understand either.

Would this include sales tax on things like our cable, lights, heating, telephone, etc.? 20-30% would stop everything! That's crazy!

[aquart]

2. Yes. And your point?

[Momgonepostal]

3. Good question

If I were faced with a 20-30 percent sales tax on top of the 7+ state sales tax I already pay, I'd sure keep the shopping down to a bare minimum.

We're in a very low income tax braket as it is. A NST sounds like a tax increase for people in my boat.

[RaleighNCDUer]

4. What discretionary spending?

Working 60 hrs a week, I have enough money left at the end of the week to maybe buy a used video from Blockbusters. Cutting down on that spending won't make a spit of difference. I already reduce/reuse/recycle, have done recycle Xmas for the past 10 years. With no tax on income, lower and middle class people will pay a far higher portion of their income as taxes, compared to the wealthy who have most of their income going into investments rather than consumer purchases. Then those investments bring in even more income.

People will deprive themselves only so long. Then they will go out and buy. Why do you think we have this record personal debt right now? During the first four years of *'s economy as wages fell, jobs vanished, people turned to their credit cards to keep going. And the people who invested in the banks that owned those cards made millions.

They are setting up an oligarchy, a wealthy class unknown in all the world before this time. You are right, it can only end badly, but they don't care because they have the money. They can take off for safer climes when it goes bad, because they will have the resources to do so.

[Starlight]

6. But that's the point...their investments *won't* earn money unless

people are buying the corporations' goods & services. I do have a fair amount of discretionary money, but if I'm getting taxed heavily on everything I buy, I won't be buying much of anything. At least not through normal channels. Black market, bartering, buying used or through individuals, etc. would be popular.

I suspect you're right about their plan, but I don't think they've thought it through enough to realize that it can't work.

[Syrinx]

5. same reason they think environmentalism is stupid

They are planning on "Armageddon" coming real, real soon.

[Starlight]

7. I'm not sure that the group that believes in the rapture is the same

group that favors the national sales tax. But you may be right. :freak:

[Syrinx]

8. I'm not entirely sure I understand your original question

But the regressivists and the rapturists seem to be using each other.

[HuskiesHowls]

9. Sales taxes are VERY regressive...

In other words, the lower end of the income scale will use a higher portion of their income to pay the sales tax than the wealthy. If you tax everything (food, energy, utilities, meds, etc) then there is no choice but to pay it. If you can cut down on your purchases of food, fine, you don't pay the tax on that, but most people can't. If you can use less energy, fine, but I still need to buy gas to get to work.
As an executive of a large company, you could get a perk-a company car. Let the company pay for the gas, since they'll get it tax-free, probably. But, as a peon in said same company, you'll get stuck paying it. As an exec, you get free lunches, as a peon you get stuck paying tax on yours.

Not to mention which, they'll probably put in an exemption that any purchase over some (very) high amount won't be taxed at all--after all, the wealthy can't afford to be supporting this country, can they??

[oscar111]

10. quick fortune made before crash: or sell to EU, CHINA, SHIEKS

two plans may be in their heads:

make a quick family fortune, and so what if the economy crashes in a year?

if the US cant buy what it produces, sell to the middle classes in Europe, China, and the rich Shieks of oil regions.

PS the usa consumer MUST buy necessities, so there is a level of spending they cannot avoid. That will feed some tax monies into the gov. for the Pentagon.. which is all the upper class wants.