GDP also includes government spending, which wouldn't be taxed since govenrment wouldn't tax itself, and investment spending, which would no be covered by a consumption tax. A more accurate figure for a sales tax rate might be 22%.
Of course, I would assume that all such analyses are failing to take into account that consumer spending would go waaaay down, given the fact that we would essentially have 22% inflation overnight. That would greatly reduce the amount of revenue generated.
Very true. It's nice to see you use some conservative logic, Eric. [I hope you know I'm just busting your 'nads.]
I think a high sales tax is a terrible idea. It is highly regressive, and would hit lower income people very hard, since they are required to spend most of all their income, as opposed to higher income people, who are able to save a chunk of their income.
I think the current system, whatever its flaws, is preferable to this idea.
