Reply #64: I don't suggest getting rid of property tax

[TexasBushwhacker]

As the system works now with INCOME tax, the only thing that is taxed are wages and income from investments (either at the personal tax rate or at the capital gains rate). Someone who is very wealthy can afford to invest thier money in tax free municipal bonds which are VERY secure, and I'm not suggesting that go away either. Our cities depend on people buying those bonds.

The poor spend the bulk of their money on basic needs - food and housing. If you don't tax rent, groceries or medicine, that pretty much covers leaving the bare neccesities tax free, doesn't it? In Texas, we even have sales tax holidays for a few days in the summer before the school year begins so that parents can buy school uniforms and back to school clothes tax free.

However, I'm not saying that a national sales tax doesn't have its downside, just that if structured properly, it could generate more taxes paid by the wealthy than the current system. The downside I see is for businesses that sell products or services that are paid for with discretionary income. I wouldn't want a national sales tax if I owned:

A restaurant
A beauty salon
A remodeling business
A car dealership
A boat dealership

A high sales tax isn't going to keep someone who's wealthy from buying a new Mercedes. It may delay someone who is poor from buying a new car when they have a car that's paid for that's running okay. A high sales tax isn't going to keep rich people from eating out at a fancy restaurant, but it may discourage a poor family from taking the kids out for Happy Meals 4 or 5 times a week instead of preparing a home cooked meal that's more nutritious and TAX FREE.

And again, because those who consume the most would pay the most tax, the government would receive tax dollars from the underground economy that they don't receive now.