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07-22-2010, 02:39 AM #11
Senior Member
Bailout Reaches 3.7 Trillion
I wouldn't mind seeing a value added tax on the first 200K and a progressive tax above that threshold. Call it a progressive Value Added Tax. The VAT is much more efficient as it is collected at the point of sale. We would still need a progressive tax structure for the top 10% of income earners.
A straight VAT it would amount to a monumental tax cut for the rich, as the percentage of income they spend on consumption is marginal in comparison to their earnings and to 90% of regular Americans. That is why introducing a straight VAT is a pet project of the GOP. Even with a modified VAT I'm certain we could do away with at least 1/2 our tax code and 3/4 of the IRS. Still, accountants wouldn't be too pleased.
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