Reply #12: Not convinced

[M155Y_A1CH]

The figures that I've heard bantered about feature a lower tax than you say is necessary. If it were as high as you say I would still support a flat tax to promote fairness in taxation. If "life necessities" are exempted it is hard to argue that the tax burden would be too high to afford even at 26%.

I suspect we will all have to tighten our belts soon even without changes in the tax structure.

Also, why would overseas spending be exempt in your model? All purchases would be taxed. We declare purchases at the border as it is.

The tax may not always be collected at the point of purchase but would be required to be declared and paid in a timely manner.

Saved money would not be taxed until it is spent and there would be no capital gains penalty because the tax is on use not on gains. You would be then free to earn what you may with no tax hindrance. All savings would then be tax exempt.

I'm sure there would be some logistical problems with it, that is not my point. Those who receive the greatest benefit from being an American would pay the lions share of it's cost.