The real question is this.... Since small businesses are the backbone of the economy.... The real question should be.... What is the fastest route of creating more small businesses in the US ? ............................................................... Now comes the next question.... Does the proposed policy created the fastest route to grow small businesses in the US ? .......................................................... So here is the last question.... Under which system will the number of small businesses grow faster ? 1) 10% consumption tax 2) The Obama tax Plan The 10% consumption tax plan will "hands down" create 1000x the number of small businesses versus the Obama tax plan.... ................................................................. Thus the deficit gets eliminated a lot faster when only a tiny fraction of an extremely large overall economy is required....versus an extremely large fractional requirement.... Geithner wants to eliminate more with less....
They're playing with you. TARP was a theft of public resources to help the rich get out of their stocks, it was pure looting of the public's money. They want the exact opposite of reducing the (largely paid by middle class) public debt.
First, that consumption tax needs to be at least 20% to cover the non-stimulus portions of the Federal budget. Second, I don't see how a penalty on consumption aids small businesses because so many small businesses provide products and service that would be affected by this tax.
You need to have business that can export to help with the balance of trade. Exports won't be subject to a consumption tax. If you don't build your export business America will hardly be able to pay the interest on debt owed to foreigners let alone any of the principal. Business that sell consumer goods or services and are subject to a consumption tax contribute little to the economy. In fact most are selling imported items which just add to the huge amount of debt that Americans owe so they actually harm the economy. The best cure for America's economic problems would be to replace all income tax with a consumption tax.
Geithner has the ability to never answer a question or to provide a detailed plan. His favorites words are "comprehensive" and "careful". The sad part is that he thinks he can fool market participants with such gibberish.
Very simple.... Country A offers.... 10% consumption tax No corporate taxes No individual income taxes....no IRS ................................................... Country B Offers 28% Corporate Taxes 10 to 38% individual taxes....via IRS ...................................................... There are a total of 1,000,000 people that have to choose either country A or B.... And there are 100 companies that have to choose either country A or B.... ..................................................... Which country will have the greatest tax take....and the largest economy.... Take a guess.... ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Case closed......