I have both now.
Won't a tax on spending induce the economy to shrink?
Does a tax on income stop people from working?
It does when it progresses to a high percentage. And if the working class has to give a 30% gift to the socialists to buy a new fishing boat many will just forgo it. We're better off with stability for the game rules we have. Historically major overhauls to the tax laws have resulted in more government and richer CPAs, and failure to achieve the original intent.
“Does a tax on income stop people from working?”
Was that a rhetorical question, because the answer for many of us small business owners is YES, IT DOES. If I got to keep more of my money, I would work more. At the point where about 50% goes to state, fed, and local taxes, I stop.