A rationale for a national sales tax

I suppose there will be time for introductions after the fact, once I’ve started blogging more steadily.

An interesting rationale for consumption taxes (read, a national sales tax) that I really haven’t heard being tossed around is the ability to tax people who otherwise wouldn’t be making taxable contributions to the economy.

People such as drug dealers, or other sundry sorts of people who don’t report their income on a W-2 at tax time necessarily buy stuff in order to exist in the scheme of things. With a national sales tax such as the fair tax, the ability to get away with not paying taxes on income would be non-existant. One would necessarily be paying taxes on everything they purchase.

That said, I still think the national sales tax is a fairly bad idea. It basically penalizes everyone but the wealthy, because everyone basically has the same needs (transportation, shelter, food, clothing) that would be taxed the same rate under this proposal.

Feel free to mutterback at me about this or any other topic that crosses your mind.


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