I wasn't very clear - a national sales tax would be more fair since poor people do not have as much to spend on consumables as richer people do - the share of tax would be fair. Profits do sustain a company and provide for further investment and R&D, but before profits a new start up must get financing somewhere which is usually by tapping savings via bonds, stocks, loans, etc. Perhaps a flat tax would work, but I think that would not be as fair as a national sales tax. I don't think this would cause people to stop spending because they would no longer owe the IRS thousands of dollars annually therefore they can afford the same product at a higher price to cover the tax.
Finally! Someone who admits that things would cost more with the tax. Thank You!
This debate has been marred from the onset by people assuming that somehow we would get our entire pre-tax paycheck and pay less at the register, too. That stunes my beeber, if you catch my drift.
Anyone who has ever been shopping in Canada has run afoul of the provincial tax, the GST, and the VAT, which can nearly double the price paid for an item by the time you get it out the door.
There is another factor, though, that being that after the elimination of the negative income tax (the EIC), wages will have to increase to make up the difference, or the working poor will not make it. The same people who pay the bulk of the taxes now will end up paying just as much, imo, just in a different way.