[lbo-talk] Canada's Surprising Prosperity: Is Taxing ConsumptionKey?

T Fast tfast at yorku.ca
Wed Oct 20 22:35:07 PDT 2004


Down with income taxes, and up with gas taxes
> and sales taxes. The rich will still pay more because
> the rich spend more, and their higher incomes will
> encourage them to spend. Even if this theory has
> flaws, simply increase the availability of the GST
> credit to lighten the load on the poor."
>

No the poor to middle lower middle class consume 100% of their income the rich significantly less. Consumption taxes are flat taxes: i.e.., regardless of income you pay the same rate. True the GST rebate provides a modicum of progressivity to the consumption tax but overall it has been a boondoggle for zero to medium income families.

Travis



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