Quote:
Originally Posted by Luca
EDIT: Oh, and yeah, it's horribly regressive as billybobsky pointed out. People who make tons of money can't and don't need to spend most of what they make. Yes, they spend more than people who make comparatively little, but unless you're making several hundred grand a year, you're going to be spending a significant portion of what you earn.
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You're missing that folks in that bracket aren't *PAYING* the taxes you assume they are. They just aren't. There are so many loopholes that it's pretty easy to avoid paying what you'd expect they would.
Sales, however, they can't really get past. If they want the new, the bling, the keep-up-with-the-Astors, then they can pay a nice chunk of that to the feds.
Also, it utilizes the existing sales tax infrastructure we have in place already - merchants need to add a single tax item to their register programming, and write one additional check each pay cycle.