Quote:
Originally Posted by roosterk0031
Just tax everything once, when you spend money regardless of what it's for. Electricity, gasoline, diesel, or car. All other taxes go away.
One state sales tax and one federal sales tax.
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That is a recipe for a very regressive tax plan where the poor pay a much larger percentage of their income in taxes. The more money a household makes the lower the percentage of income that is spent on typical consumer goods that are subject to sales tax.
That is unless you are going to tax EVERY good and service including stocks, bonds, houses, credit default swaps, etc.
It is also a recipe for large swings in tax revenue because consumer spending drops like a rock during recessions - just when you want the government to ramp up spending.