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Originally Posted by flstf
I suspect that the current taxes we pay are a lot higher than 50% when you factor in the amount of hidden tax added to the price of all the goods and services we buy. Every business involved in getting that bread to the store is taxed and those taxes are passed on up the ladder until the consumer buys it at the grocery store (and then we pay a sales tax on top of that). That's where the saying (businesses don't pay taxes, people do) comes from.
So the current estimate of 50% should be added to the additional cost of goods and services we pay because of the taxes being passed on to us and added to the price. If the amount of that hidden tax is 75% (my wild guess) of the price and if you buy $20,000 worth of goods each year you would be paying an additional hidden tax of $15,000 on top of the 50%.
That's why I asked how much of the price of goods is included there (in the price) because of all the taxes added in by all the businesses involved.
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Good points. That is why I think the overall effect of a consumption tax would be less of a burden than the current system places on us.
It would be hard to prove, but one could theorize that the price of goods would go down as much or more than the rate of the consumption tax. The real effect could be that we pay a higher tax on lower priced items, equalizing the equation.