Quote:
Originally Posted by kane
True, but to me the only way for a national sales tax to work instead of income tax is if you tax basically all non-essential items. Don't tax groceries and toilet paper or medicine, but if you go out to eat there would be a tax on it. Put the tax on beer and soda and foods that are luxury items. People could still buy used, but I know a lot of illegals that go to a Mexican restaurant near my house (they make the best fucking nacho  ) they would be taxed on their dinner there or when they buy their beer and cigarettes and cowboy boots and a lot of other things. |
The tax would need to be high, especially if you aren't taxing basic items. The fair tax calls for a 22% sales tax, and that includes basic items. You'd be looking at a 35% tax rate on your non-essential items. Don't you feel that the economy would be dramatically halted by penalizing people for buying non-essential goods?