Eomund on 13 January 2008
| Entroper said: @Eomund, if the states get to keep 0.25% of the consumption tax, they would be able to drop their sales tax by 0.25%, not "a point." |
I was wrong on this point, I retract it. I simply was thinking the Administrative Credit would be more than it is. I ran the numbers for the average state's AC and it was much lower than I thought. However the States could decrease the cost of collecting taxes if they switched to a FairTax system. Most states already have some sort of sales tax and could just increase that infrastructure. The costs of administrating the income tax would disappear and replaced by the sales tax commission paid for by the Federal Government via Administrative Credit. The budget could decrease therefore not requiring the same amount of taxes collected. That was my main point. Sorry for my misunderstanding.
