Quote:
Originally Posted by ZNPaaneah
I once read a book where the thesis was to replace the entire tax code with a sales tax. The benefits were that you could target it, so that luxury items have a higher tax rate and essentials like milk and bread could have no tax.
The benefits were that it is much easier to collect, it eliminates the annual tax form, and it eliminates all kinds of loopholes. You can't raise taxes on the rich because they have a multitude of dodges. They can establish a residence overseas, etc. What the government does have authority over are the consumers purchasing any and all things in this country.
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Though appealing, the incentives to avoid these taxes by bartering are just too great. Who would buy a new car or home when the tax alone would triple the cost.
Our capitalistic system of credit multiplies the available money. This is the principle no one seems to understand anymore. Socialists in the Democratic party have not a clue how economics operates. Yes indeed, with capitalism we have both rich and poor. With Socialism, however, we only have poor, very poor, because the multiplier effect is gone.
The Communists sort of made socialism work by creating a two class system. Those in "the Party" and everyone else. Whenever you think Socialism is appealing, then take a look at Venezuela. The richest nation in central and south America went broke almost overnight. Yet today our elite universities are pumping out socialist millennials like "bricks in the wall."
