- Banned
- #41
Pragmatist do not seek perfection. They seek the resolution of problems in the most practical means possible. Consumption taxes give people the option of regulating the amount of taxes they pay. We can probably never cover all of gorvernment costs with consumption taxes, but we can cover many of them. The less the percentage of taxes needed through a flat tax or a progressive tax, the fairer our tax system becomes because we give folks the ability to put themselve to a position of paying "no taxes".
The poor spend virtually every nickel of income on survival through consumption.
The wealthy, try as they might, cannot even put a dent in their wealth.
A flat consumption tax would vastly redistribute wealth upwards compared to progressive taxes on financial means be they income or wealth.
Just the opposite of what is necessary today.
Problem solved by not taxing certain products deemed as necessities. Taxes on some other products don't start until a certain level is reached. Everybody gets the same level of relief for certain things like heating oil, electricity and whatever else we decide is a necessity. It is fair because the rich guy gets the same amount of tax free electric, heating oil, whatever that the poor guy gets. The poor guy might be able to get by on $200 a month on an electric bill. If the rich guy wants to live in a huge house that uses two or three times that amount, or many times that amount, that is on him. He made the choice to load his home up with extra appliances, heated swimming pool, sauna, fancy outdoor lighting, whatever. He gets the same first $200 of usage as the poor guy, tax free. That makes it fair. Everyone is treated equal, down to the dollar, down to the cent. We can use this concept on all kinds of things.
If you have to use the word "fair" to support it, it's not a serious proposal. There is no such thing as universally fair.
It is rapidly getting as complicated as today's law. And too complicated appears to me to be the only reason for moving away from today's process.
And that's rapidly going good away by itself thanks to tax software.