In response to:

The Right and Wrong Approach to Tax Policy

Ned6 Wrote: Aug 02, 2012 4:38 PM
In theory, the VAT, FairTax, and Flat Tax create an equal burden on the consumer, if the tax rates are equal. In practice, gross salaries would have to be reduced to get rid of the embedded income taxes, if you were to switch. Since that will not happen, conversion will create a one-time inflation-like increase in prices of approximately 25%, if we got rid of the income tax and moved to a FairTax. (See the footnote on page 144 of "FairTax: The Truth" -- 'prices would rise by 24.8% but wages would rise by 27.4%') Because of the tax accommodation embedded in gross salaries , switching to either VAT or FairTax is fatally flawed, so we need a Progressive Flat Tax - see my comment above.

“I personally don’t believe we ought to be raising taxes”

“You don’t raise taxes in a recession, which is why we haven’t and why we’ve instead cut taxes. So I guess what I’d say is … you don’t raise taxes in a recession. ”

“The real risk to this economy is on the side of slow down…and that means we’ve got to make sure that we don’t take gasoline out of the tank at the end of this year.”

If you thought these quotes regarding the extension of the current tax rates were from a Republican, I wouldn’t blame you. But...