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Originally Posted by KevinTheHerbivore
So you're saying that places such as Alabama, where all taxes are incredibly low (even by our VERY low American standards), that they would welcome an 8% sales tax on goods, were there of course no income tax....? Now, other Libertarian estimates I've seen have placed the tax at a much higher rate than 8%, which it would probably need to be to make up for lost revenue.
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Yes, it would be higher than that in order to maintain our current level of government. What I said was that 8% sales tax is considered high in this day and age: sales tax where I live is around 7%...
I believe that the estimate is around 18%? I could be wrong.
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I disagree with the notion that people would prefer paying higher taxes on their consumer goods. How is this still not essentially an income tax....? You're taking more per every item from their pay checks, you're just not doing it directly....
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I don't think that people would prefer one over the other, but I do think that it would make people more aware of just how much taxes have affected their lives. A better informed public naturally leads to better policy.
It's a consumption tax. Money saved would not be taxed a la income tax, thus creating economic incentives to save. If more people save for the future, that means that less government involvement will be "necessary" to protect the poor/lower income/disabled/etc. In turn, taxes will be cut as government programs will be viewed by more and more people as outdated and unnecessary.
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Well, I'm happy for you and your ideology, but IMO, the focus of the conversation should be what's best (and most practical) for our nation's people.
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(stands up on soap box) What's best and most practical for my country
is the advancement of my ideology!!! (shakes fist in the air, stands off soap box)
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OK, will do, but can you speak on the less corruption point...? How so...?
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It would be a lot harder for the wealthy to get by without paying taxes. It's not like they can just lie and hide their money: if they don't pay the tax, they don't get their items.