Awesomelyglorious wrote:
ed wrote:
Ron Paul, for all his good points, advocates replacing the income tax with a consumption tax. This would be (another) boon for the weralthiest Americans, who spend a much smaller portion of their income than the poor. This is nothing but an attempt to reverse the tax tables, so that the poorer you are the higher the tax percentage you must pay. Typical pro-wealthy Republican!
Well, the idea of this tax is to promote savings because savings lead to greater economic growth and economic growth is typically seen as improving all people's positions. If greater economic growth is the result of this tax change then can we really call this nothing but an attempt to reverse the tax tables?
You can promote savings all you want, but some people just live week by week, and can't afford anything out of their routine necessities. And others live off pensions which basically pay for you to live.
Savings is a nice concept, but I know many to whom savings is a very, very far away reality.
And savings does not promote the economy, spending does. Thats why you have the consumer spending index. More people spend, more money goes around, better things are. If everyone kept their money to themselves, then people won't be buying things, then the people selling things can't earn a living, and the companies making things can't pay their employees.
More spending = better economy.
Why does the economy go up usually good in times of war? Because the government is spending money.
I like Ron Paul, but I do have issues with the universal sales tax concept.