My problems are the same as yours for the most part, but I do believe in taxing consumption. I think that people should be encouraged to make money, as well as save money. Consumption tax discourages debt purchases. I'm not saying that it is better for our economy in the short term. It is likely worse for the short term econ. The biggest flaw seems to be that the assumption is made that prices of goods are based on cost of production, which is only slightly true. Price generally isn't set below production cost, but demand determines price. It would take a little while for the price to drop enough to offset the tax increase. But there are huge benefits also. We would essentially be taxing people who visit the US. We have a huge tourist base that would help foot part of the bill. We created a place worth visiting, so if they are going to visit, they can contribute to the cause. I was recently in Costa Rica. Admittedly the ~20% tax I was paying on all purchases wasn't great at the time, but I wasn't against paying it. Cutting government spending is a whole different ballgame. I personally think that a consumption tax should be set low on purpose and not be allowed to pass a certain rate. Inflation alone would increase the gov revenue, but in real terms it should be close to constant. Then if we took power away from the FED so that they couldn't mess with currency value to increase government wealth, our gov would have to start running more efficiently.
It's easier to track underground goods than underground pay in the form of cash. Policing would be easier than the current system. The reason no politician other than Ron Paul will support consumption tax in lieu of the IRS is that the average consumer will immediately become a small government voter when they see directly how much the public sector takes from their household.
Paul is the only Republican who will deliver on that. And everyone knows it. The rest are Establishment Shills that will do nothing but continue the status quo. North American Union, anyone? Seriously.
Max: >The reason no politician other than Ron Paul will >support consumption tax in lieu of the IRS is that >the average consumer will immediately become a >small government voter when they see directly how >much the public sector takes from their household. Ain't that the truth. Those of us who are self employed and have to actually write the check understand that pain the best. JB
I agree. Paul doesn't have the polish of a Romney or the jocular swagger of a Guiliani. But like you said, he's got it where it counts. Everyone knows the Republicans are running deadbeat hacks that, if elected, will do no different than Hillary. I firmly believe that Pauls principled integrity and Small Government philosophy is enough to compel voters to look past his rough presentation - given the chance. His media coverage has been negative, at best. He was literally laughed at by on-screen voice-overs during the first Fox Republican debate. And continues to fight incredulous media opposition to his "outlandish ideas" - ideas, mind you, this Country was founded and thrived upon. The last Fox debate earmarked supporters 1,000 tickets. Thats it. Think those resounding boo's would've been heard if Fox didn't rig the audience?? Thats BIG TIME media manipulation right there - given that most Americans revert to herd-like behavior from picking everything from their career to their next president. This Country has really become a nation of pathetic, little whiners who crave the doting scrutiny of Big Brother. Despite his obvious shortcomings, I'll do everything possible to get Paul elected. Who else is going to beat Hilliary? If Paul can win the nomination, he'll get the swing states. Its all about name recognition now.
It's easier to track underground goods than underground pay in the form of cash. Policing would be easier than the current system. Huh? When every single business and every consumer is tempted to engage in cash-only, tax-free transactions and save 30-40%? When every single consumer starts ordering goods and services from China and Malaysia in order to avoid this huge markup instead of using local retailers/service providers. Good luck policing every single domestic and international transaction. the average consumer will immediately become a small government voter when they see directly how much the public sector takes from their household. And now when they see 30-50% of their earnings deducted from their paychecks they don't? Come on! People reject the idea of a consumption tax for a lot of different reasons, that they don't now how much they pay to uncle Sam is certainly NOT one of them.
Excellent article. Ron Paul would be by far the best president for the US. Unfortunately he is too intelligent and not charismatic enough for the average stupid American. The people get the president they deserve. They don't deserve anyone as good as Ron Paul.