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Originally Posted by 1stindoor
Those two qualifiers are enough for me. I probably should do more than a overlook at the consumtion tax issue. One of the biggest questions I can imagine would be how would the state and local governments get their "cut?"
I also don't understand why it would make US manufacturers move back to the U.S., afterall there's still the wage and benefits package for their employees to consider. What would entice the company to come back to the US? Seems to me this genie has already escaped. Originally I suggested heavily taxing their products upon return to US soil...but that too will just get passed down to the consumer. Honestly I don't see any real fix until the average American consumer is willing to spend more to have things made and produced in the U.S.
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Right now the US has the second highest corporate tax rates in the world. Going from second highest to none, you would assume it would prompt a move to headquarter your corporation in the US. Again, the taxation only happens upon purchase of an item, not on earnings.
There are already sales taxes embedded in every level of manufature of a good. These would all be stripped out and replace with a tax rate of 20% (I think). This would actually not make the price of goods go up. It would be practically transparent due to the embedded sales taxes. It has been awhile since I read the book, so the info isn't exactly fresh in my mind, but there was practically none of the plan that didn't make perfect sense.
We drafted a document 4 pages long that established the greatest form of government on Earth...but can't reduce the tax code to a manageable level. Go figure...