Would a Consumption Tax limit or stop consumption?

[Toots]

I don't claim to be any great intellect but I believe if the cost of goods suddenly went up thirty percent people would stop buying as much. I would only buy what was absolutely essential and most wealthy would stop buying American. Talk about tax cheating now. I am sure that it would not take long until everything we bought would start being classified as used (secondhand) so no taxes would apply. Government would go broke even faster than it is now if that is possible. Is the desire of Repulicans really to destroy America. I know they are rushing headlong toward that goal but do they really realize what they are doing, or are they for the most part as brainwashed as their constituents? Is this a deepseated ambition or just a few head honchos know the real impact of their decisions? I really would like to know because if it is just a few big dogs at the top who are turning America into a fascist country we might win out but if we are truly up against half the country I probably don't want to live in such a country. Do mainstreram people really believe America is on the right track?

[Cobalt Violet]

1. Speaking for myself, I know I would have to cut down on spending.

I'm already quite thrifty. I think black markets would do really good.

[leftofthedial]

2. the indirect effect would be worse

It would be another nail in the coffin of the middle class and working class, who "consume" mainly the non-optional necessities of life and who are already eliminating discretionary items from their shopping carts.

--and yet another idiotic act further concentrating wealth in the hands of a few super-wealthy famiies.

It also would further empower the corporations at the expense of the consumer.

But yes, if one believes that consumers are rational, increasing the cost of consumption would be a disincentive to buy.

[etherealtruth]

4. Exactly ....

... As an example, such a tax (gas tax for the sake of debate) is unlikely to alter the habits of a Hummer driver, but will make the commute to work for poorer (or lower to mid-middle class) workers unaffordable.

Using this example, more efficient choices such as using mass transit, is not possible for many, and will only add to further impoverishment. In Metro Detroit, as well as many other areas through out the country, there is no efficient mass transit.

[leftofthedial]

5. Mass transit where I live (city of 2.5 million) is pathetic

It takes hours to get anywhere and usually requires multiple transfers, usually involving multiple spearate tickets.

Busing to a weekly meeting place takes an hour and a half and two transfers each way. Even then, I have a nine-block walk each way as well. Driving to the same meeting is a straight shot down a major street only a few blocks from my house and takes fifteen minutes.

For at least 25 years that I know of, a right-wing "think tank" has consistently infiltrated the regional transportation board with stealth members who have sabotaged all attempts to implement useful mass transit.

[beyurslf]

3. A 30% tax makes that 1/3 off sale not look so great anymore.

[ZombieNixon]

6. No. If anything, it would actually increase it in the long run.

We are broke now. The government needs money, and a consumption tax is easier to control. If you want higher revenue out of income tax, you have to make everyone rich. That takes work, plus rich people lobby to cut that same income tax, With a consumption tax, to increase revenue, all you have to do is encourage materialism. Get people to BUY BUY BUY, and when all that tax revenue goes to the treasury, it fills up real fast. So, the feds will encourage consumerism to higher extents, eventually causing the world's worst environmental disaster as we run out of resources. When that happens, our economy will tank so bad the Great Depression will look like a right bit of pudding.

On edit: I swear I'm getting dyslexia, but I can still spell. "Long run" somehow became "Wrong one." :shrug:

[dcfirefighter]

7. On top of the existing taxes

it would crush it.

In replacement of existing taxes, it would limit it.
Don't forget, this tax isn't exported, all exports would be leaving this country at a 30% discount. So jobs would remain, and therefore some level of consumption would remain.

Likely, many people would be more careful with their spending, and get more out of less, while saving some for later.

It does have the neat effect of untaxing employment, therefore increasing jobs and wages.

[bklyncowgirl]

8. Probably force it underground. People can be so creative. nt