Who supports Huckabee's consumption tax proposal which rids the rich of loopholes and the nation of the IRS?

Answer 1

I don't think this is the "flat tax", it's basically a national sales tax. I'd be more inclined to support a flat tax, where EVERYONE pays the same percentage with no deductions. If you want to exempt the first $25,000 (or what ever poverty level is) that's fine, but no deductions, no loop holes, but that exemption is for EVERYONE.
I'm a little concerned that a national sales tax might stifle the economy, but I'm not an economist.

Answer 2

A 'consumption' tax may sound like an appealing way to get rid of the IRS and to make taxation equal among the population, but I'm not sure the dynamics would work the way the think. It would be based on what the every day consumer spends..food, gas, etc....which would only seem to make it harder for the lower income families to actually grow. When Steve Forbes was running for President, he supported a "Flat Tax", which is very similar. I don't like the current tax system and I do believe that it seriously needs to be overhauled...but I cannot at this time say that I would support this type of change.

Answer 3

It won't work.

How could such a scheme NOT produce cheats and evaders. Tax consultants will think of ways which are barely legal and even before they do, the rich will fly elsewhere to shop. The wealthy also spend only a very small fraction of their income on consumer goods. They mostly invest the rest, and all that would be non taxable. On the other hand, almost all of the income of the poor goes toward buying necessary goods, and these will all be taxable. The result could be something like 10% of the rich's income would be taxed but 90% of the income of the poor would be docked. That's not what I would call a "fair tax."

Answer 4

I'm in favor of doing away with the IRS, but if I understand Huckabee's proposal, "Consumption tax" is a tax which targets the poor and middle class...inevitably they will pay a higher percentage of income in tax, since they have to spend a higher percentage to live...I would expect a lot of people to be opposed.

Consumption tax is not "flat tax" which is just a reformed income tax.

Answer 5

It has good and bad points.

Good
1. If you want to save your money, you don't get taxed on it.
2. The illegals can't get away without paying.

Bad
1. It disproportionately affects the poor because they have to pay a higher percentage of their income in taxes.

Unless they make certain life essential things tax free such as food and housing up to a reasonable cap, I could not support this program.

Flat tax would work, but it wouldn't solve the illegals not paying taxes issue.

Answer 6

It doesn't really matter how you calculate the tax, or collect the tax. If the government spends the same amount of money, we all have to "pony up". In the end, The poor and middle class end up paying most of the taxes, because we are the vast majority. There aren't enough wealthy people to tax, and how much can you really take from them. (They are not going to give it all back.

The best answer to our tax codes is smaller government!

Answer 7

I think he's dreaming about it bringing businesses back. the only thing that will work that miracle is either an import tariff, or Americans dropping wages to 50 cents a day without any safety laws.

Its sounds like another way for Big businesses, and people who can afford to shop over seas to pay nothing while the middle and lower class shoulder the burden of protecting the rich people's wealth.

Answer 8

But the problem is it always gets twisted around to the middle-class like us have to pay for everything. We have some crooked politicians that will f-it-up in a heartbeat.

In a perfect world it would be awesome and I would support it. But like anything else there will be teams of lawyers and politicians continuously trying to find ways around it.

Answer 9

I like it but I'm not sold on it... my largest problem is I haven't found an answer I feel comfortable with dealing with the possibility of a slump in spending on the part of the people... a small recession.. they stop spending.. the government goes broke because it doesn't have a set income to rely on. Other than not being comfortable with the answers I've received for that thought thus far.. it seems like a good concept.. it just has a lot of bugs to be worked out still to be efficient and practical in my opinion.

Answer 10

I'm all for a consumption tax and getting rid of an income tax.

However the transition would wreck the economy.