Mohacsy's Safe Portfolio Member Forum

[SeriousMoney]

How about a progressive or graduated sales tax instead of an income tax. The more you buy, the more tax you pay.

Advantages:

To minimize taxes, individual & corporate buyers would consider more economical purchases, which encourages more economical use of capital, labor, & resources.

If buyers choose to purchase less economical (more expensive), they pay more tax.

With no income tax on interest or dividends, citizens & businesses would be encouraged to save more which provides more capital for investment.

Food & medical & education could be baselined or exempted.

Sales tax rates can be adjusted to encourage or discourage certain products (fuel, tobacco, technology).

Automatic tax receipts at point of sale. So no estimated tax payments, year-end checks to IRS & state, or income tax filings.

Dissolution/scaleback of IRS & State Dept of Revenues, i.e., less government.

Tax collectors & tax accountants & tax lawyers have to make career changes.