Skip to main content
No. of Recommendations: 26
Not by much. There is discretionary spending, and there is required spending. One would think they would be easily differentiable.

One of the proposed tax systems out there is the Fair Tax which is a federal sales tax. You responded to the earlier post about sales tax with no deductions by saying "not include non-discretionary spending like medical expenses". The Fair Tax includes medical expenses. Now you've created one exception. Someone else might say housing is a necessity of life. So exceptions are added for mortgage interest and rent. Rent is taxed under Fair Tax. Another person says food and clothing is also a necessity. So you pass more exceptions for food and clothing. Then someone objects to the broad addition of food and clothing by saying chips, soda and bikinis are not necessary. So large lists for food and clothing are created defining what is non-taxable (underwear, shoes and fruit) and what is taxable.

Soon the one exception, medical expenses, is expanded significantly to a large list of other exemptions and you then have just as complicated system as we have today.

PSU
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.