Re: OT Friggin' economy!!!

> This economy could go either way at this point and the next election could > be critical. Don't know what tax increases would do to the economy at this > point, tax cuts either.

Tax cuts are truly effective when the most money goes to the most people and that simply doesn't happen with flat tax cuts.

Huckabee is the only one who is advocating a total > change in the tax system. That may be what it takes at this point. Scrapping > the current tax system and adopting a sales tax based system will make our > exports cheaper which will improve the trade deficit. You will have your > entire paycheck to spend rather than just the half or so they allow you to > keep. There is a $.40 per dollar tax built into the price of all the goods > and services you are currently paying for, which will lower the price of > those goods and services by about that amount. The tax that is being > discussed will be about $.30 per dollar so the actual price of things will > be about the same.

That type of system will simply not work and much of what is said about it is just blowing smoke. You mentioned a 40% tax built into the price of all goods and services we are currently paying for. What makes you think that will change at all? Companies like to make money and if they no longer have to worry about paying a tax on their income..... lets make the big bucks. I also am unaware of many companies either big or small that don't buy anything. If they buy goods or services, then they are going to have to pay that same 30% sales tax and trust me, they will not eat that added cost, they will pass it onto the customer by maintaining or increasing prices and if they make a little extra doing it..... All this system would do is pass the major costs onto those who could afford it the least. People who currently don't pay taxes becuase they are below the poverty level and spend every penny that they earn just to stay alive will now be paying a 30% tax on every penny that they make while those who are making millions will be paying damn near next to nothing because most of them only spend a small portion of what they make.

The best part of this system will be that the IRS can be > reassigned from harassing people who are working to live the american way > and put them to the task of using those same skills to ferret out terrorists > and other dangers to society.

That will simply not happen. How would you deal with the stock or commodies markets? There is no way that they could tax based on purchase price becuae if they did, nobody would buy them so at lest this much would still need to be taxed on income or profit and someone will need to be there to keep track of it.

Whoa! I got really off topic there didn't I? LOL

Which tends to be the norm in this group which helps to keep it interesting.