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Stocks B / Berkshire Hathaway

URL:  http://boards.fool.com/one-side-effect-is-that-sales-tax-encourages-30305300.aspx

Subject:  Re: U.S. economy and markets Date:  10/7/2012  12:56 PM
Author:  AdvocatusDiaboli Number:  194718 of 217174

One side effect is that sales tax encourages saving relative to
consumption which would reduce the weighted average cost of capital
of US firms which would increase their value (not just their prices).



It would also be extremely regressive and dampen demand in the middle of a recession/depression so it may be a really disastrous idea.

Perhaps it would be better to increase the income tax accordingly.
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