Is Huckabee proposing a 23% sales tax and abolishing income and payroll taxes?

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Discussion Overview

The discussion revolves around the proposal of a 23% sales tax by Huckabee, alongside the potential abolition of income and payroll taxes. Participants explore the implications of such a tax system, including its fairness, potential workarounds, and the overall effectiveness of tax reform.

Discussion Character

  • Debate/contested
  • Conceptual clarification
  • Exploratory

Main Points Raised

  • Some participants express concern that individuals living off savings would face double taxation: once when the income was earned and again when spent under the new sales tax system.
  • There is a suggestion that mechanisms might be implemented to mitigate the financial burden on those affected by double taxation.
  • One participant argues that reducing government spending would be a more effective way to lower taxes rather than shifting to a high sales tax.
  • Concerns are raised about the regressive nature of a high sales tax, which could discourage spending and disproportionately affect lower-income individuals.
  • Some participants speculate on potential workarounds businesses might employ to avoid the sales tax, drawing parallels to historical practices in North Dakota.
  • A participant references Norway's high sales tax and questions its success, indicating a desire for comparative analysis.
  • Humor is introduced with a nickname for Huckabee, reflecting a more personal or critical view of his proposals.

Areas of Agreement / Disagreement

Participants express a range of opinions, with no clear consensus on the merits or drawbacks of Huckabee's proposed tax changes. Multiple competing views remain regarding the implications of a sales tax versus income tax.

Contextual Notes

Participants mention various assumptions about the tax system's impact on different demographics, but these assumptions are not fully explored or resolved within the discussion.

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So if you are living off your savings you will be taxed twice, once when you earned it under the old system, and again when you spend it under the new.
 
jimmysnyder said:
So if you are living off your savings you will be taxed twice, once when you earned it under the old system, and again when you spend it under the new.

Sounds like it, although I'm sure some mechanism would be put in place to recover such loses.
 
The way to lower taxes isn't by taking away income tax and making us pay that kinda sales tax, its to just cut all the crap that government is wasting money on and start trying to run it more like a business. Less money spent = less money needed.

Obviously government isn't a business, but you have to agree that there's a lot of stuff out there that we really don't need to be spending money on.
 
gravenewworld said:
I would just move close the border with Canada and hop the border every single time I needed to go grocery shopping.

Either that or businesses would find some smart way to work around the tax. Long long ago, I think North Dakota was the only state that didn't have laws against usury, so all credit agencies put their main headquarters there and had branches in other states. I don't see why something that can't be done to work around sales tax. Put the head location in Canada and have branches in the US. When you buy groceries, you'd be given a bill payable to a location in Canada, in US dollars, and you would pay it at the bank or online just like any other bill you get in the mail :-p

That's also a terribly regressive taxation scheme. It might even discourage spending if people get psyched about how much tax they pay every time they buy stuff. I think it's Norway that has insanely high sales tax; does anybody know is that was successful?

edit: Sales tax in Norway is about http://visitnorway.com/templates/NTRarticle.aspx?id=28268 .
 
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jimmysnyder said:
So if you are living off your savings you will be taxed twice, once when you earned it under the old system, and again when you spend it under the new.
This semester we study the system only in equilibrium, that is as t-->00. We shall consider transients in a follow on course.
 
After watching and listening to the man for a bit, I have started to refer to him as Chuckybee.

http://upload.wikimedia.org/wikipedia/en/thumb/8/84/Chuckydoll.jpg/250px-Chuckydoll.jpg
 
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