Quote:
Originally Posted by Ronbo
Seems like a good idea except for one thing... Incentive.
If the tax system is comprised of sales tax only, the government's incentive is to foster consumer spending. (bad idea)
A flat income tax (and only income tax, no business taxes or the endless "fees") would give the government incentive to increase earning. No more hiding taxes in product prices.
Things like wars would have to be paid for with voter approved "special taxes" that are revoked at the end of the conflict. No voter approval, no war. No results, we pull your funding.
Any person in public service found guilty of corruption, death penalty.
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A sales tax system is still better than a flat income tax because the amount of tax people pay is theoretically their choice, i.e. they could chose to reduce consumer spending - that is not bad at all. In addition, for those how complain about government overspending, a sales tax would theoretically solve that problem also: there would be no ability to steal money from the citizens to pay for their boondoogles.