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<blockquote data-quote="audioholic" data-source="post: 7927551" data-attributes="member: 549629">Im not at all sure I believe in discouraged spending. People will always want and need things. Our bracketed income tax structure could be said to discourage people from becoming rich (and hence spending more), which could also be said to discourage spending.Much of the negatives seem to revolve around encouraging &#039;investing&#039; rather than spending. For example, home ownership. But I suggest that these things could be adjusted for, such as no (or less) sales tax when purchasing your home or investing in your business. The negative, &quot;tax evasion and instances of black market purchasing would likely increase&quot;, I also find to be faulty logic because tax evasion on income tax is already easy to accomplish, especially for the wealthy who can afford to hire tax attorneys. Its true that a simple fair-tax system with a fixed tax rate for any and all purchases is not the solution, some adjustments would need to be made. But its a much better base system to start with than is income tax, imo. I completely disagree with the negatives of many accountants losing their jobs, and the transition cost being high, because the long term benefits far outweigh the short term problems. If we, as a society, decided a law was unfair/unjust, would we still maintain this law so that cops and prison workers dont lose their jobs? If we applied that sort of mentality universally, slavery would still be legal, as that exact same logic was used to try and discourage its abolishment.Thanks for the links.</blockquote>

[QUOTE="audioholic, post: 7927551, member: 549629"] Im not at all sure I believe in discouraged spending. People will always want and need things. Our bracketed income tax structure could be said to discourage people from becoming rich (and hence spending more), which could also be said to discourage spending. Much of the negatives seem to revolve around encouraging 'investing' rather than spending. For example, home ownership. But I suggest that these things could be adjusted for, such as no (or less) sales tax when purchasing your home or investing in your business. The negative, "tax evasion and instances of black market purchasing would likely increase", I also find to be faulty logic because tax evasion on income tax is already easy to accomplish, especially for the wealthy who can afford to hire tax attorneys. Its true that a simple fair-tax system with a fixed tax rate for any and all purchases is not the solution, some adjustments would need to be made. But its a much better base system to start with than is income tax, imo. I completely disagree with the negatives of many accountants losing their jobs, and the transition cost being high, because the long term benefits far outweigh the short term problems. If we, as a society, decided a law was unfair/unjust, would we still maintain this law so that cops and prison workers dont lose their jobs? If we applied that sort of mentality universally, slavery would still be legal, as that exact same logic was used to try and discourage its abolishment. Thanks for the links. [/QUOTE]

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