Reply #98: I was thinking last night

[melm00se]

and a lot of people here state that sales taxes are regressive, especially on the poor.

they are correct, historically and as they exist now, they are regressive. That fact, however, should not prevent folks from working to create a sales tax plan (in lieu of existing forms of federal taxation) that address the inherent inequities, having that tax plan be debated upon its merits and analyzed with an open mind and not be dismissed completely out of hand based upon the way in used to be.

As to this specific plan, the prebate idea has been dismissed, quite derisively, by some based upon the fact that some people don't have addresses. Homelessness is absolutely deplorable and should be high on the list of things to fix but that issue (or any non-catastrophic issue for that matter) should not paralyze other public policies or be used as the sole reason to dismiss new ideas.

I look at this plan as a potential, something that should be looked at and seriously analyzed (with an open mind) to see if it:

a) would (or would not) negatively impact lower income families.
b) have the suggested impact of lowering prices by 20-25% (which would make the new price + the new tax equal to the current shelf price).
c) would generate sufficient revenues to make this plan revenue neutral to the federal government.
d) would generate the actual savings of the $270 billion lost to the overall economy (or $900 per person) to comply with the existing federal tax laws.

If it doesn't and would create a worse issue than (or not improve on) what exists now, then scrap it or rework it to see if the flaws can be addressed...the status quo, which is an out of control, easily manipulated, special interest catering, disaster, is no longer, IMO, a viable situation.