Comment: For many years, I have thought that a consumption tax that excluded housing, groceries and medicine would be a better alternative to the current system. This would make the consumption tax less regressive for lower wage earners and it would make for a less complicated system. April 15 would not be a significant date as it now is. The IRS's job would be to make sure retailers compiled with their obligations and the IRS would not need to enforce actions against the consumer. Those that are in illegal activities or those that were in cash businesses that failed to report their earnings would be in the system as far as paying taxes. All consumers would pay their taxes at the cash register. In a flat tax situation, there is still the problem of unreported earnings. I think consumer prices would fall allowing a growth in spending leading to a growth in the economy. Although I can see a few problems, I think this is the BEST alternative for taxing. Thanks, Tim Poole |