Tax discussion thread (U.S. focused)

[TheRealMafoo]

akuma587 said:

TheRealMafoo said:
I want no income tax. Earning money is nothing more then transferring your time into something other people want. Why tax the conversion?

I want all tax collected when you spend it. Things like food, and basic clothing can be tax free. All other things should have a tax that is high enough to collect enough money to run the country (30-40%). Also interest should be taxed.

The pure act of transferring your time into a commodity should not incur a penalty. Everything else is fair game :)

Do you have any idea how badly this would work?  People would start buying all their goods abroad either online or through other means to avoid the tax because they would end up saving more money that way, not to mention exports would decrease dramatically.

What you are proposing would cripple the economy because people would adjust their spending habits to avoid the tax whenever possible.  A less than 10% sales tax may affect people's purchasing habits, but not anywhere near as much as a 30-40% tax. 

You claim to know so much about economics, but you are proposing something that would cripple the U.S. economy.

 

Final-Fan is right about corruption. It would be hard to keep people from bartering or just out right buying things under the table. But aside from that, I think it's a good idea.

Oh, and it's not my idea. I shared a cab ride once, on the way to the airport from a tax convention, with the head accountant from Disney. It was his idea. I am guessing he knows more about the economy then both you and I combined.

I was skeptical of the idea at first, but he made some very good points. Sadly, I was flying first class, and due to the free alcohol, I can't remember all the talking points :p