Quote:
Originally Posted by dabateman
Offset and eliminate are not the same thing. They will still be paying more taxes than in the status quo, a proposition most can ill afford. And the definition of basic necessities is a bit vague. That would have to be cleared up. I'd be closer to supporting a VAT with an exemption for individuals who make up to a certain amount.
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That is exactly the concept involved. By prebating(a rebate before instead of after) you are actually "exempting" the first portion of the taxes due to be paid.
Actually it has been my experience that I get by much less expensively than the government "allows" for in the tax codes. If I itemized I wouldn't even get close to the standard deduction.
The wealth penalty someone mentioned. You only will pay taxes on what you buy if your money stays in accounts and draws interest or if you make money by investing you will not be paying taxes on it. There will also be a lag period while instituting the plan.
Graduated tax system: The rich spend more and thus they WILL pay more in taxes.