-=> On 02-24-98  22:58, Walter Luffman did testify and affirm <=-
-=> to Robert Craft concerning advert. for 23% sales tax <=-
 
 RC> I think the 17% was the flat (income) tax while the 23% was
 RC> the sales tax; so on a national scale, we're talking about
 RC> 17% of taxable wages and 23% of consumer sales. National
 RC> taxable wages and national consumer sales aren't the same
 RC> base.
 
 RC> It may also be that the 23% includes social security
 RC> reform. 
 WL> The national sales tax sounds like a good idea, but I don't
 WL> look forward to it -- I pay 8.75 percent in state and local
 WL> sales taxes now, and even that amount is enough to raise my
 WL> blood pressure!
It seems to me that the sales tax is inherently
inflationary. For example, can you imagine financing a car
with an added 23% sales tax?
 WL> Question: does the national sales tax proposal include a
 WL> mechanism for adjusting the rate as consumer spending
 WL> increases and decreases? 
Not that I've seen. I do think that there does need to be a
cap of nn% of the purchase. After all, God only asks for
10%. 
 WL> I ask because discretionary spending, especially on
 WL> big-ticket items, is affected by factors that are mostly
 WL> beyond government control. 
As I indicated above, therein arises inflation.
Also, let me point out that the sales tax is also punitive
to retirees and those others living off savings. After
paying the Federal government 28-36% income tax on those
saved dollars, you now find that Uncle Sugar wants another
23% of each saved dollar as you spend it.
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