The problem with a consumption tax is not that it isn’t superior to an income or wealth tax. The problem is that the current US obsession with “fairness” would likely result in the addition of a consumption tax to the existing income tax, rather than a replacement of the income tax.
If spending isn’t cut, fighting over the most efficient effort of collection is like shuffling deck chairs on the Titanic.
Exactly!
CT is a perfect case in point.
It has a sales tax that was continually renewed beyond original sunset promise.
Then a state income tax was invoked in the early 90’s, with the promise that the sales tax would be significantly lowered, and all budget woes would forever be gone.
Reality - sales tax on Everything, including out of state purchases (literally called a Use Tax). Even tag sales on used items are supposed to collect a tax to remit to the state.
A National VAT tax will fix nothing, just as the case in europe.
Some wonder if it’s implementation will eventually become an electronic tool of big brother, ie: “no man shall buy or sell, without the mark of the beast”.
“The problem is that the current US obsession with fairness would likely result in the addition of a consumption tax to the existing income tax, rather than a replacement of the income tax”.
You have stated what many overlook. Any new tax needs a corresponding elimination and replacement of a previous method of taxation. Hince, tea, taxed enough already.
The two items mentioned in the article quoted below also deserve comment:
We have never had a national sales tax or value added tax in this Country. Why? Because they are not authorized by the Constitution.
We were manipulated into supporting the 16th Amendment. We were told the income tax would “soak the rich” and the envious drooled at the prospect.
First one is obvious as states generally charge the retail sales tax.
The soak the rich aspects of the Federal Income Tax are now laughable if not truly sad. It depends on the definition of “rich” and that has been downgraded to include the middle class, and no tax for anyone else, and thus the economic destruction of what made this country great.
The socialists will likely follow Europe and impose a VAT in addition to the income tax. Once interest rates rise then the interest on the debt will explode and they will need even more money