Originally Posted by whack-n-stack
Originally Posted by hunterbuck
Originally Posted by whack-n-stack
I'd rather do away with all the taxes we have now, and pay a 10% tax on everything we purchase.


I'm all about a flat (consumption) tax, but the number to make everything work is well above 10%...more like 22%. We already pay 10% on pretty much everything we purchase. Yeah, I know...they should be able to make it on 10%. But, that's not realistic.

Even at 22%, I would take it and run.

Consumption taxes also encourage saving money, something a lot of people have zero clue how to do.


It’s nearly impossible to quantify that. When you factor in vehicles being sold two or three times over its life and being taxed 10% each sale, it would probably come out somewhere higher than 22% of the original price. Much less, the 10% the manufacturer paid for all the components to assemble the vehicle.

Imagine if 10% of every transaction in the stock market was paid on the front end instead of when it was sold or not at all if it’s in some tax deferred account.



Manufacturers wouldn’t pay 10% on components. With a consumption tax system, there is no business-to-business sales tax. The end user who “consumes,” or uses, the good/service is who pays the tax. I point out service because, unlike our current sales tax system, services are generally also taxed with a consumption tax. It’s a value added tax - common in Europe - where the components or inputs are taxed at each level.

To your point about stock market transactions - they would not be taxed. No good is being consumed. You’re simply purchasing shares in a corporation.

Last edited by BGR; 11/15/23 10:01 PM.