Jackson50 on 22 October 2008
| That Guy said: I think a consumption tax (i.e. a national sales tax and no income tax) would be a great way to go, since richer people buy more stuff, thus pay more taxes. |
Rich people may purchase more in real terms, but people who earn less spend a greater portion of their income on consumer goods. It would be regressive. You could include a rebate to mitigate this, but I am unsure if that would be the best course of action.
