Reply #19: Consumption tax is the most regressive type of tax [View All]

[PA Democrat]

Wealth by its very definition means that you spend less than what you make. The poor and middle class are spending almost every penny they make, and sometimes even more, when you consider the fact that they are incurring debt to support their lifestyles.

The ultra rich will make out like bandits and the middle class and the poor will get screwed under a consumption tax. The Institute on Taxation and Economic Policy has written an excellent analysis of the effects of a consumption tax.

http://www.itepnet.org/sale0904.pdf

I suggest you read it carefully before jumping on the consumption tax bandwagon, because unless you are wealthy, you'll be paying SIGNIFICANTLY MORE taxes. In fact, the Institute on Taxation and Economic Policy estimates that a consumption tax would increase taxes for the bottom 80% income bracket by more than 50%.