Message Font: Serif | Sans-Serif
No. of Recommendations: 2
IMHO, such a national sales tax would be a very regressive tax system, penalizing those with a lower income. If you start doing exceptions for certain expenditures, then you create a bigger monster. The only good thing about it would be that it encourage savings. But savings does not improve production and it will result in a lower GDP.

The reason that minorities do not push it is that besides been regresive, it would eliminate the Earned Income Credit, which minorities are the main beneficiaries of.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.