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Originally Posted by sperry
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Originally Posted by BAN SUVS
Trying to suddenly shift the Federal budget requirements from income tax to sales tax would destroy the economy. People would buy 20% less stuff when that federal 20% sales tax kicked in. While the system sucks, the income tax idea is better than the sales tax idea. What bugs me is that states are allowed to do both when the Federal gov't explicitally bans iteslef from using sales taxes (not counting import/export excises).
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Eh? People will buy less stuff? Think of it this way: prices go up 15-20%, your income goes up 15-20%... proceed with life as usual. |
It's the psychological aspect of it- Your groceries would cost 20% more, your CAR would cost 20% more, etc... people would spend less (even though they technically have more money).