Friday, September 17, 2004
The Simply Screwy Consumption Tax
The Bush "Consumption Tax" is the next great con trying to be pulled on the American people. All that it is is a national sales tax. That means, if you spend the majority of you income on food, clothing, furniture, electronics, etc. Your taxes will go up. If you have a lot of stocks that you buy and sell, your taxes go down. This means 98% of Americans will pay higher taxes (the middle and lower classes) while the top 2% will get a tax break. The only way this benefits you is if you pay more in capital gains and dividen income off of you investments than you would pay in sales taxes. This tax break on investment does not affect 401k and IRAs because they are already tax deferred accounts, so the consumption tax does not help. So, Yippee, I will not pay any tax on the $2.12 a month in interest I get off of my savings account. But I will now pay much more every time I buy something from the store. This is a regressive tax that only punishes the poor and middle class. Once again, I say, if you are middle or lower class and you are voting for Bush it is only because you have not really thought it through.