Consumption Tax?

[distorted]

Some of you may have heard about the Bush administration's plan to elimate income taxes and start a consumtion tax plan. What is this you ask? I am here to explain.

As you know, income tax will cut your paycheck in half, once you get it half it is going right to the government. It discourages the saving of money, it is simply NOT WORKING.

Bush's new plan includes a consumption tax, which is a 23% tax on everything. You're thinking, MY GOD THAT'S NUTS. But the upside, you're keeping your whole paycheck. If you making $60,000 a year, you're keeping $60,000, unlike income tax where you would make $35,000 after taxes. Now, putting money away will cost you nothing, and you pay for only the things you need. You can choose whether or not you want to pay taxes. If you don't want to pay 23% on a car, don't buy a car! It's simple. I want your opinions on this tax plan. I think it's a great start to something better than this tax system.

[DrNatchKilder]

Aside form the quantity of the tax, why do you think it's better?

I have the impresion it's worse, but please explain yourself in case i'm wrong

[distorted]

Say you get a $3,500 dollar paycheck and you're saving for your 4-year old daughter's college. The government isn't going to take any of that paycheck, you get all of it. Then, you put $500 away into your daughter's college fun. Still no taxes on it. Then you take the remaining $3,000, buy what you need, and then use what's leftover for whatever you want. What you have to do, is decide if it's worth paying the tax on. This way, you are rewarded for saving money, rather than spend it, and saving money is a lot faster. So you be the judge of this, but personally I love it, and just wanted your opinions.

[Morextremist]

but will it 25% tax everything?

I think it will be good for fat people, they'll starve to save some cash

[Slizor]

Bush has left nothing to chance....this will destroy American Capitalism as we know it, hooray! Not only will there be massive inflation (as people always try and fiddle you) but the Government will get less and less money. Also, this massive inflation will A) destroy pension funds B) destroy the immeadiate effets of savings C) lead to the end of a debt culture...which is keeping the American economy alive. And last but not least the saving instead of spending...this is a bad thing for the economy, Saving = Not Spending = Less Demand = Less Supply = Less jobs.

Nothing left to chance, on the up side it will encourage people to reuse and recycle more.

[Ted-Easton]

It will have little effect. People will speak out loudly against it at first, but will settle into it.
We've had a 15% "consumption" tax here for close to 50 years.
The country's government charges a 7% "consumption tax" (GST(Goods and Service Tax)), and provinces charge different amounts.
Ontario charges 8%.

[scavio]

I agree with Slizor. Not only does this not spur growth at all, but it would hit the middle to lower class much harder than the upper class (who will actually benefit in the end). What Bush is really trying to eliminate is the capital gains tax so the rich can be even better off. Funny thing is, I'm a republican and most of what Bush has pushed to do makes sense. I hated estate taxes (the thought of me paying taxes my whole life, saving what I can, dying, then the government taking another cut makes me sick). This plans stinks, however, and I think Americans are resistant enough to change to fend it off.

[Slizor]

A repulican agreed with me! On economics no less!
*starts to dance*

[Ted-Easton]

It wouldn't signifigantly alter anything. it would make HUGE revenue for the government, raise prices on everything you buy, but people would get used to it.

[implodinggoat]

At 2/14/03 02:40 PM, distorted wrote: Some of you may have heard about the Bush administration's plan to elimate income taxes and start a consumtion tax plan. What is this you ask? I am here to explain.

As you know, income tax will cut your paycheck in half, once you get it half it is going right to the government. It discourages the saving of money, it is simply NOT WORKING.

Bush's new plan includes a consumption tax, which is a 23% tax on everything. You're thinking, MY GOD THAT'S NUTS. But the upside, you're keeping your whole paycheck. If you making $60,000 a year, you're keeping $60,000, unlike income tax where you would make $35,000 after taxes. Now, putting money away will cost you nothing, and you pay for only the things you need. You can choose whether or not you want to pay taxes. If you don't want to pay 23% on a car, don't buy a car! It's simple. I want your opinions on this tax plan. I think it's a great start to something better than this tax system.

While I definately agree that the U.S. tax system needs some serious work. This is not the answer.

While this system would allow for the elimination of programs such as social security if people saved a great deal more it would also have the somewhat negative side effect of, DESTROYING THE ECONOMY!!!!

Many companies would go bankrupt due to the huge decrease in spending that would occur and the U.S. unemployment rate would skyrocket to levels it hasn't reached since the 20s.

With the U.S. economy seriously and permanently crippled the U.S. would lose its title as the worlds only remaning superpower to another nation such as Japan or perhaps Lichtenstein.