Sorry, the ktm post seemed to imply an ignore. Tom please post as I think that would be worth discussion. I'd be willing to say that adjusted rates maybe ok also. In other words over x income the rate is more, and so on. For me going beyond 35% is out of hand for anybody, but that is a code that offers zero deductions, in other words that is the absolute max rate.
I'd prefer tax rates. Consumption taxes more directly would make me think twice about a purchase and possibly stall the economy. I all ready pay sales tax at the state and local level, plus state income taxes. To me when people don't see a direct connection between their tax bill and buying a 2nd, 3rd tv or whatever they will probably buy it and help the economy. Tax them directly more than once for that purchase and I for one will definitely cut back on what I own and buy. I'll hold off a car that much longer, and I go 10 years now. I won't bother with a new tv, and to hell with paying even more for cell phones, internet or cable tv. one or two will get dropped or downgraded. Replace the stove, nope I will piece meal it for another couple of years. Buy a motorcycle again, nope. Hell, I won't even go out to eat as much as I do now, and I don't do it that often, but it will get me to cut back.
Those are good points. A question for the consumption tax advocates...What's to stop enterprising individuals from simply purchasing used and avoiding the tax altogether? Or better yet, what percentage of sales would be used vs new? stalling production or demand for new cars, new appliances, etc, etc.
Maybe I misunderstand how it would work, but I think if you buy a used item from a buisness you will pay the tax just the same as new. Or for that matter buy a used car from an individual, you will still have to license it and that is where you again pay the tax. Less than new, but you can't hide from it either.