|
Just remember that a consumption-based tax on sales is a Value Added Tax (VAT) system. So, any grievances you've heard from the other side of the Atlantic regarding such a system will apply here as well.
Me, I'm for consumption-based taxation. I'm also for taxing waste not work, essentially the same thing. But, don't get your hopes up. And, do you really think "they" will do this *instead* of an income tax - try *in addition* to one.
I am for a holistic tax system where you tax the resource inputs used to create products. But, if you're going to be fair, you've got to include some resource inputs we currently don't. Any big business having Clean Air Act permit produces a KNOWN amount of pollution, self-monitored under EPA oversight. So, it's not to hard to calculate (and in fact must often be done under the CAA's PSD, "prevention of significant deterioration," system) how much clean air a factor uses to make a widget. If you're going to tax resources, why not tax that as well - after all, Co. X took our clean air to make its profits, it should pay for what it uses in all fairness.
And, until these sorts of resource input accountings are in place (likely NEVER), a plain VAT-based sales tax won't fall as much on the shoulders of those who are using resources to make the profits. Instead, they fall on the end-consumer. Why? Because the Co. X does not have to account for this asset it "purchased" when it makes the next-down-the-chain sale and reconciles its sales tax amount.
You see, it's more complicated to use this system that it first seems. The end consumer is easy math. But, complex accounting rules will apply for the middlemen, who but (paying sales tax), then add value, then sell (taking in sales tax to give to Uncle Sam).
Like I said I'm for it, but we'll never have the political will to do it right.
__________________
 
|