Conservative Republicans say they hate taxes, especially income taxes. But that hatred doesn’t stop them from coyly proposing taxes on items we use every day. Taxing everyday items like haircuts, movie tickets, e-cigarettes, and additional tax on gas have a negative impact on spending.
Most of us don’t realize the impact these surly taxes have on the poor, middle class and upper class says Dan Newlin. Consumption taxes take spendable income from the poor and middle class, but the upper class find a way to benefit from them. The upper class want tax policies that help provide more jobs and encourage business growth.
Some governors want to decrease state income taxes and increase sales taxes. That plan has some merit, but in order for that plan to be effective, the income tax code must be changed. If we go to a straight sales tax system, and eliminate income and state taxes, the amount of taxes paid by all citizens would make more sense.
But don’t hold your breath. Revamping the income tax code is a monumental task for a Congress that can’t agree on what time to have lunch. The tax system is broken, and if we continue to tax people’s income and what they consume, economic growth will suffer more than it is suffering now.