So the PA governor is proposing to lower the taxes on property and business and increasing the taxes on consumption.
The higher income tax is not cool, but is this guy a conservative, by any chance?
Do you really think this is a break even proposition? That the sales tax is going to offset a cut in property tax? Really? And if it does what does that give the most incentive, to work or not work? He is also proposing removing some exemptions to sales tax, another blow to the working poor.
No, he is a liberal through and through, elected by Pittsburgh and Philadelphia.
And Punctuate this....
A sales tax is a tax on consumption. The more you tax something, the less of it you get. So a tax on consumption is preferable to a tax on production.
A property tax is a tax on production, as is a tax on business. So decreasing these is a good thing.
An income tax is a tax on production as well, which is why I said a higher income tax is not cool.
The good thing about a sales tax is that it taxes everyone and not just property owners. It taxes everyone who uses roads and bridges and other government services. So there's that going for it.
The downside of a sales tax is that it is regressive, which is why I prefer a Fair Tax.
As for exemptions to a sales tax, that perfectly confirms what I have said about tax expenditures time and time and time and time again on this forum.
No matter what tax scheme you have, it will be utterly corrupted if you do not ban tax expenditures.
No one ever seems to get that. And here we have a blinding example of what I mean.