Sorry, but I’m not buying this (too high a tax on credulity). Canada had a national consumption tax at 8%, without the drop in sales this article claims resulted in Japan. When it was lowered by a couple points, we also didn’t see a big jump in consumption. Same goes for Europe, and many other countries with consumption taxes.
High aggregate taxes are a concern — but, consumption taxes actually disrupt the economy less than income taxes.
The point was with an announced rise coming in the tax rate, many people bought in advance, particularily more expensive items. Over time it will likely level out. But a increase before the tax rate and a decrease immediately afterwards seems reasonable.
posted on 04/09/2014 10:17:09 AM PDT
(life is fragile, handle with prayer)
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