national sales tax

[jrhc1210]

Cig tax is inelastic to a certain degree.  That's why some people are ordering their cig from indian reservation or throught internet sales.  They arent actually reducing their consumption of cig.

Oh God, price elasticities!! Horrible memories of econ are returning....

[jgruber]

To a certain degree.

Cig tax is inelastic to a certain degree.  That's why some people are ordering their cig from indian reservation or throught internet sales.  They arent actually reducing their consumption of cig.

Oh God, price elasticities!! Horrible memories of econ are returning....

[buster]

Anyonymous Bush staffers quickly came out and said that he was not considering the idea.

I have seen serious estimates that even to replace federal income tax alone (i.e. not the other various taxes), the national sales tax would have to be in the neighborhood of 30%. FYI.

[Bisquick]

Think of what that would do to the economy.  The month before it went into being you would have the highest sales of any month in the history of the US.  Starting the day the tax went into being the gravy train would slam to a skidding stop.  (Guess you would have to graduate it in over a few year period.)

It would be interesting to see how long it took for consumers to get used to the concept and start spending at normal levels again.

[buster]

Not only that, but think about this:

Let's say I made $100 last week. I took home approximately $80. Today they cancel the income tax and institute a 30% sales tax. Now my original $100 buys $61.54 worth of stuff. Lots of cranky people.

Think of what that would do to the economy.  The month before it went into being you would have the highest sales of any month in the history of the US.  Starting the day the tax went into being the gravy train would slam to a skidding stop.  (Guess you would have to graduate it in over a few year period.)

It would be interesting to see how long it took for consumers to get used to the concept and start spending at normal levels again.

[jgruber]

You have to wonder why the president has to be corrected by anonymous staffers.

Anyonymous Bush staffers quickly came out and said that he was not considering the idea.

I have seen serious estimates that even to replace federal income tax alone (i.e. not the other various taxes), the national sales tax would have to be in the neighborhood of 30%. FYI.

[buster]

You have to wonder why the president has to be corrected by anonymous staffers.

I think you're being coy.

[jgruber]

You have to wonder why the president has to be corrected by anonymous staffers.

I think you're being coy.

No, just polite.  What I wanted to say is that it is pathetic that our president has to be corrected by staffers and that the staffers have to be anonymous.

Why didn't the president correct the impression he left?  It's not hard.  Something like "It is an interesting idea, but greater study and consideration is necessary before such a concept can be considered for national policy."

Are these people his staff or are they his handlers?

[Bisquick]

but.. your original take home pay was probably $70  and now you would be taking home $100.  As brilliant as most folks are at math, they would probably think they had more money, since there was more in their hand.  I'm also assuming they wouldn't tax food, clothing, etc. up to a certain level to correct regressive nature.

[nathanielmark]

with a business degree, bush has no excuse for not understanding the regressive nature of a sales tax... just proves his ignorance on matters of substance.

You have to wonder why the president has to be corrected by anonymous staffers.

I think you're being coy.

No, just polite.  What I wanted to say is that it is pathetic that our president has to be corrected by staffers and that the staffers have to be anonymous.

Why didn't the president correct the impression he left?  It's not hard.  Something like "It is an interesting idea, but greater study and consideration is necessary before such a concept can be considered for national policy."

Are these people his staff or are they his handlers?