Dr. Martin Hash Podcast

Taxes should not be a drag on commerce, the worst being Sales tax. A Sales tax is counterproductive in 3 ways: it requires effort to collect, report & oversee; it reduces purchasing power; and it’s regressive, meaning that it essential takes from everyone and gives to the Rich. The simple fact is that a robust economy wants people to consume; that’s where jobs come from. Unfortunately, there’s an almost inexplicable contrary view that regards consumption as something to be discouraged? Nothing really explains the Consumption tax fetishers except perhaps misplaced ecopiety, envy of those consuming, or a complete lack of economic competence? The only thing the Consumption tax people get right is that they want it to be progressive: the more someone spends, the higher the tax. This positive aspect is accidental since their goal is to discourage consumption rather than redistribute wealth. A graduated tax would be progressive, meaning it redistributes wealth from the Rich to the State. However, the best argument against a progressive Consumption tax would be to imagine the accounting shenanigans it would foster.