Bar Stool Economics

[Spunt Drag]

Originally Posted by Gerald

Flat Tax..........Lets take this one step farther.

Lets eliminate all Federal income tax and replace it with a Federal sale tax. I don't know what the percentage would be, maybe 5%. Everybody pays the same percentage on what they spend. If the RICH spend a lot of money, they pay more "taxes" on the money they spend.

Maybe something like food items bought at grocery stores would not be taxed.

If you save your money [kind of the same thing as a Roth IRA] you don't pay any tax on that money.

Think of what this would save the Governent..... no more IRS and everything involved in collecting income taxes. Yes it would add to the "sale tax" collections system cost.....but the net savings would be HUGE.

While I would love for this to happen, you wouldn't have much of a military with that little of revenue. And your savings aren't taxed, unless you're talkin about a death tax. What is taxed is the interest your savings or investments (capital gains) make.