Originally Posted by Chrispin
Income tax should be outright replaced with increased sales tax. If you want a fair tax, there it is just as long as there are no loopholes. The only negative side-effect I can think of is it scaring away tourism. For those worried about the jobless, welfare could be improved by giving those on it more of a sales tax break and less of a money handout. Investors would be equally affected by the increased cost of buying/selling stocks. Exported goods aren't affected, import sales are taxed just like everything else.
Of course this is all just the ideal situation. Online merchant companies like Amazon will probably need to stop being exempt from sales tax. There may also be increased black market activity, but the thing is that the black market isn't properly paying its income tax anyway.
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Way to think of a way to stomp on the poor even more so than now.