[roosterk0031]

Originally Posted by JSH

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.

http://fairtax.org