Re:The IRS has upgraded its technology to track virtually ev...
by ars on Sunday June 16, 2013 @02:24AM
(#5887659)
Tax already has an effect on demand - it reduces income, which reduces available money. This just makes it more obvious.
Corporations are owned by people (consumers as you call them), tax the person, not the intermediary.
And in any case the corporation would also have to pay the tax on everything they buy.
Re:The IRS has upgraded its technology to track virtually ev...
by eightyone on Sunday June 16, 2013 @06:23AM
(#5888028)
You should check out the link I posted above. Under the FairTax the highest and lowest brackets will see their share of taxes go down. Everyone who makes between $15,000 and $200,000 will see their share of taxes go up.
It's a tax on buying. Think about that for a moment. Fair Tax proponents claim that the current tax system causes disincentives for things like exports and U.S. manufacturing. Why would the Fair Tax proposal then not cause a disincentive on the demand side of the economy? ("How will the plan affect economic growth" in the FAQ clearly espouses a particular economic ideology that has yet to be supported by any of the facts of history.)
It also places the entire tax burden on the consumer. Annual pre-tax corporate profits are somewhere between $800 billion and $2 trillion, depending on which data you decide to believe. Why is all that money being left on the table in favor of drawing the entire national budget from consumers?