CONGRESS says...

[Harold7]

CERuppel

The great justice of a consumption tax is that no one can use any loopholes that others don't have to avoid taxes, everyone (rich, poor, foreigners, criminals) pays the same tax whenever they buy anything.

This type of tax would at least gain tax revenue from the criminal class who pay no taxes on the fruits of crime.

One added benefit of a comsumption tax is that the government could no longer user the IRS and the tax forms to gather data on us and how we live our lives.

The rationale for taxes on business escapes me since businesses don't really pay taxes anyway... their customers pay higher prices for goods and services, stockholders get smaller dividends and smaller earnings per share and labor pays with fewer jobs and lower wages and benefits, all the result of business taxes.

That's not to mention the armies of lawyers and lobbyists that business must employ to fight the assault of government and politicians on business activity... the tax code for business almost acts a protection racket run by politicians and lawyers to create a job market for tax lawyers and lobbyists.

If the tax on business didn't exist, think of all the resources presently being spent by business just to hide income from the government and to buy the goodwill and influence of politicians.

[Max50]

CERuppel,

Your correct regarding offshore tax advantages. Loss of employment opportunities are lost as well, and it is an economic reality that business-friendly countries do present an issue for a competitive advantage challenge to countries that compete globally. Cities and states give a tax advantage (ie no property taxes for X years) to attract and compete with other cities and states in the intrerest of gaining employment opportunities for their constituents.

But I was focusing more on local, smaller businesses/family or otherwise that may incorporate or partnership. In the aggregate this sector may be more significant regarding the economical welfare locally when compared to large corporations that have a global base.

[Chuckiechan]

The problem isn't taxes, it's spending!

And to give any money to anyone greater than the amount they paid in taxes is welfare, period. The Democrats want to take the stigma off welfare by changing the name.

What's wrong with them groveling a little?

[Max50]

The problem isn't taxes, it's spending!

That observation is correct. A tax cut to stimulate the economy should be offset with an equal amount or less in spending otherwise it is a redisribution of the national wealth. Additionallly an increase in spending over and above the tax cut will have inflationary affects.