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Originally Posted by KMA-628
If the plan I am referring to will hurt the middle-class more than they are being hurt now, how will that be? As I have stated before, I used myself as an example (and no, I am not posting the numbers--I did, however, post hypothetical numbers that are similar to mine) and have come out on the positive side in this argument. Since I am solidly middle-class, how will I get hurt?
If there are serious problems or things that need to be considered regarding a consumption tax, I really, really want to hear them.
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My initial thinking is that a national sales tax (consumption) or possibly a flat rate income tax may be fairer to most of us. However I don't know how to evaluate them because I don't know how much the current tax system is costing us now or how much the consumption tax would have to be to make things revenue neutral.
How can we possibly evaluate a new tax system when we don't know what the existing one is costing us now. Please see my posts #35 and #38. I don't think anyone else knows either or at least no one has come forward with an answer. If we got rid of all other taxes and replaced them with a consumption tax, it may have to be as high as 300%.
So I will ask again. How much of the current price of goods and services is included because of all the businesses involved passing the taxes up the ladder until the consumer eventually pays them all (indirectly) because they are included in the final price? Add how much a typical middle class family pays in indirect taxes this way to your estimate of 50% and we will have a starting point to evaluate from.
I have searched the net to no avail and was hoping a business major or tax pro could answer this. Surely they cover this kind of thinking in business schools.