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0 pointsphkahler9y ago0 comments

"fair tax" is the stupidest thing ever. How do you implement a progressive tax on consumption? You'd have to keep track of every purchase a person makes to know how much they've spent. It's worse than keeping track of income, and it's also a massive surveillance tool. Then there's the whole problem that people who have lower income will pay a higher percentage of it in tax. There is nothing good about that scheme.

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pvnick9y ago

How come it has to be progressive? Wealthier folks consume more and therefore pay more.

taurath9y ago

Wealthier folks consume less as a percentage of their income than poor people do. If you add a 10% sales tax on food, the poor are hit harder, as a percentage of their income.

tstrimple9y ago

This is such an important point that so many seem to miss. The more income you have, the higher your disposable income. A person who earns $20k per year probably spends $20k per year. A person who earns $50 million a year isn't going to spend $50 million every year. Even if their income skyrockets to $150 million, they likely aren't going to spend $50 million in a year. It's just not feasible. Therefore, any sort of FairTax or FlatTax is hitting the poor a lot more than the rich and is regressive by definition.

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