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patphil

(8,332 posts)
16. Consumption based taxes are never fair.
Fri Jan 20, 2023, 04:25 PM
Jan 2023

Lower and middle class people spend the overwhelming majority of their income to pay daily expenses. Their federal tax bill is significantly less than 20%. This is effectively a huge tax increase for them.
On the other hand, the rich only spend a small part of their income for the same kinds of things. Much of their income goes into investments, savings, or actually leaves the country. They will see a significant tax decrease from a sales tax based system.
Of course this is exactly what the Republicans want, since they are rewarded so very well by their rich donors whenever they pass a big tax break for them.
Just simplify and enforce the current system.

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