No. of Recommendations: 11
Some economists tend to favor consumption taxes as the way to go.
Unfortunately, consumption taxes become an undue burden on the poor. It is estimated that about 25% of Americans have zero savings. While there might be outliers, the vast majority of the people need to spend every penny they earn on food, housing, clothing, healthcare, and transportation. If costs go up (tariffs, etc) they have to do without some basic necessities. While we might not be happy, I assume that you and I (and most people on this Board) could handle a 15% increase in living costs.
Consumption taxes are regressive and will also slow down the economy. 25% of Americans will spend less on goods and services because they’re already spending every penny they have.
But it CAN be used to bring down the federal deficit and, ideally, start paying down the debt.
Maybe this was the goal all along.
Ha ha, you made a funny. The goal was to lower taxes on billionaires.
Personally (and they say I’m a dreamer), the best way to get the debt under control involves compromise; cutting spending AND raising taxes (hopefully, on those who can afford it).
But compromise is a dirty word these days. Just look at the bipartisan border bill shot down by Trump. Not perfect by anyone’s standards, but it would have at least move us in the right direction. Biden was old school (pun intended) because he believed in compromise like the infrastructure bill. Trump believes the only way to win is to have someone else lose. Compromise is weakness.
More to say about this, but my nephew and grand-nephew are on their way to visit.
