posted on March 8, 2002 03:03:53 PM new
The universal sales tax plan has some appeal, but it has some deficiencies that it can not address.
An extremely wealthy person can avoid much of the tax by not making actual purchases in the U.S..
They can use a taxi or limosine service and never buy a car - this includes starting their own taxi or limosine service. They can live out of the country most of the time, and yet derive a huge income in the U.S.. Imagine a stock portfolio that produces a few million dollars a year and you just globe trot all year long on your tax free income. No purchases need be made in the U.S., and you could live quite well.
The sales tax would hit quite hard those that are raising children and the poor. They do not have the means to escape the taxes- they have to make the purchases and they have to stay put.
posted on March 8, 2002 09:24:42 PM new
Hmm... businesses already give themselves tax breaks, why would a flat tax affect their current actions? They already get the perks, and a flat tax wouldn't change that.
I think a simplified tax system would be very welcome, and I have kids too.
