Comment Re:Let me get this right (Score 1) 839
How do you implement a progressive consumption tax?
The easy way would be to have different tax rates depending on the cost and/or type of the good.
An example rate schedule might include:
Groceries: Exempt
$0-50: 2%
$50-100: 4%
$100-1000: 6%
$1000-10000: 10%
Automobile < $30000: 6%
Automobile 30,000-100,000: 10%
Housing: < $200,000: 5%
etc
This is not an endorsement, I don't like the idea of replacing income taxes with consumption taxes, but this is a way to make a progressive consumption tax. The problem is, however, that once someone is wealthy enough, they don't have to buy their goods within your borders. They'll buy the $500,000 yacht somewhere that won't tax them for it.
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JimFive