Posted by Don
on 11/8/2008, 11:42 pm, in reply to "Working for sales"
71.117.35.41
"Even if the tax revenue is mostly from sales taxes, aren't you still taxing what is produced for useful purposes?"
Yes, but it is not a direct tax on production. Under such a system I can work all I want and put it in a bank, buy food, clothes, and shelter, and pay no tax. I am taxed when I buy someone else's goods or services (not exempted). Yes, that's not good either but not as bad as taxing production.
There is no need to worry about graduating the tax for poor people - if a person truely is poor he can buy his food, clothing, and shelter and pay absolutely no tax at all. It would be all of us who buy cars and furniture and games and sports stuff and boats and hunting equipment and computers and TVs and vacations and nights out to eat - we will pay the tax.
Don
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