do you think the u.s. should do a flat tax?

[JBinKC]

I think they should abolish all income taxes and establish a VAT.

[VJW]

Originally Posted by JBinKC

I think they should abolish all income taxes and establish a VAT.

A VAT would act the same as a national sales tax. Even with exemptions for food, medical care, prescription drugs, and housing, the Middle-class would pay almost THREE TIMES as much of their income, proportionally, as the wealthy, and the Poor would pay FIVE TIMES as much of their income, proportionally, as the wealthy.

Some of the impact of the heavy regressiveness of a Single-Rate income tax, National Sales tax, or VAT, can be blunted by a large exemption at the bottom, however this thereby reduces revenues even further which then requires raising the eventual rate even higher.

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