Consumption
pic from jczart
While there is lots of arguing over who is right, it is the results that count. When one talks about tax reform and spending let’s try to remember how many people are employed just by the complexity that Congress has created. By starting over and scraping the exemptions, credits, and deductions one can bring about a trillion dollars to be used to lower the current deficit. This does not mean increased spending. There should be no increase in spending by Congress.
It seems sensible to be ride of the fight over taxes and move to a consumption tax. This means the more you consume the more you pay. This means industry would be motivated towards more innovation of the most cost effective product and lower ones consumption costs.
This should include a serious conversation about an end to the sales tax exemption to nonprofits as well.
