Nothing but the truth!
By Will Power
September 13, 2011 (San Diego)--The latest neo-con pipe dream to come down the pike is a Universal Consumption Tax. This is like a National Sales Tax, but instead of taxing luxuries like yachts, second homes , and luxury cars, this Consumption Tax would tax food, prescription drugs, gasoline, and electricity, gas and water.
The rich, who do not spend their money because they are too busy investing it, would be untouched by a Consumption Tax. But the Working Poor (Should I say the Unemployed Poor) would find practically everything more expensive.
It's not that the rich hate taxes. They just want the poor to pay them. The poor cannot afford to set up a tax-free foundation or move their assets into municipal tax-free bonds.
During a recession, increasing the taxes on the working poor would further decrease discretionary spending, making recovery more difficult.
By all standards a Consumption Tax would stifle economic growth, cost millions of jobs, and increase public debt. Meanwhile the rich could travel, spend their money overseas, and not feel the bite.
The short-term kick of increased government revenue would not last long, as the negative effects would quickly increase unemployment, increase foreclosures, and cause people to be unable to pay their water, gas, and food bills. Medical prescriptions might become unaffordable, and the result would be an increase in hospitalization or death.
The neo-cons used to refer to the Inheritance tax as a "Death tax." But a "Consumption Tax" would mean a real Death Tax for workers and a windfall for the rich!
Will Power is a retired history teacher and creative writing instructor. The views in this editorial reflect the views of the author and do not necessarily reflect the views of East County Magazine.