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Reasons why consumer spending taxes would be a bad idea over our current tax settings?

Reasons why consumer spending taxes would be a bad idea over our current tax settings?

Postby jarl » Thu Feb 23, 2012 3:20 pm

I can't think of a bad reason why consumer taxes on everything (even produce/food) would bad?

Our current tax system is a nightmare. I'm currently paid as a sort of self contractor wage. My employer doesn't take taxes out is what I'm saying. So I'm trying to claim as much expenses with my job (or mileage haven't decided yet) as I can. I'm unsure of what to do. I feel like you got to be a freakin' tax lawyer to understand what is legal and what won't get you under a buttload of IRS fines.

Tonight I was talking with some people, about tax changes - where they were POSSIBLY planning on removing the taxes taken out of checks, and making it so you just spend more on products, and will now include food tax (which we don't have here in Texas).

To me, this not ONLY sounds easier on the consumer/workers, but the government would end up with WAY MORE MONEY! EVERYONE would be taxed, and taxed properly. Even if you're a saver, you gotta buy food, you gotta buy gas/bike tires/shoes to walk to work, you basically have to spend money in this country in order to make money.
Not only that, BUT
Here's the big thing EVERYONE cries over-
Illegal people will pay taxes finally (no other way to avoid it)
Drug dealers will be taxed now (no way around it now right, why would they pay taxes on drug money previously?)

If rich people buy higher priced products, they'll end up spending more in taxes!
Poor people buy cheaper stuff, their taxes will be lower, only because they can't afford higher stuff.


EVERY scenario I play out, ends up in working out flawlessly.
Please help me here, I don't see why we haven't been doing this for decades.

Tell me, it'd be more difficult to spend 5 cents more on a soda and 40$ extra on a t.v. now, then worry about 8,000$ in taxes I owe later.
jarl
 
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Reasons why consumer spending taxes would be a bad idea over our current tax settings?

Postby jomei69 » Thu Feb 23, 2012 3:27 pm

Works out great for the really poor people who are working their butts off now just to feed and clothe their families, and keep a roof over their heads, since they'd get to pay tax on everything they buy rather than get some money from the government.
jomei69
 
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