Posted by burnsy483 on 6/26/2014 9:43:00 AM (view original):
I would guess that the majority of people who understand economics would agree that this sales tax idea would have ramifications that would make our economy worse off than it is now. There's a reason we have a progressive tax system. Obviously we disagree on that, but that's basically what he was arguing up until Bill James. So I agreed with most of what he was saying until that point. But I think 10:1 could be disastrous.
It would have ramifications and adjustments would have to be made. As for making the economy "worse off than it is now", that's debatable. I honestly don't know the take home pay for someone making $400 a week but I do know it's taxed so I know they're not cashing a $400 check. They get their money back when tax returns are done. So, IMO, they're increasing their weekly take home by $60-$80 a week or more than the 23%(or whatever number we're going to use) sales tax. Where they "lose" is they won't get that $3000-$4000 "bonus" in Feb/Mar. Now I don't know how they spend that money but, when I was in that situation, I ****** it away on a new TV or rims for my truck. Things I could do without. Maybe some people do useful stuff with that money(my low wage buddy I mentioned earlier does) but some don't. People will adjust.
Beyond that, I believe illegal money, foreign tourist money and illegally made money paying the extra sales tax will more than cover the revenue created by the current tax system and that will allow the future % to be lowered.