"Fair" is one of those loaded words. Fair to who, exactly?
by Barney68 (2024-02-17 13:13:14)

In reply to: The philosophy of taxation  posted by BeijingIrish


Taxing consumption is pretty common. We have a sales tax here in Maryland. It has its good features (encourages saving in a way) and bad features (regressive).

Would this include all consumption? What, after all, is "consumption?"

Is buying a home one will live in consumption? If yes, this would raise the effective price of a home by 20+% in taxes. Home owners would be the ones penalized because if the total price stays the same, that 20+% is coming out of their hide. If homes aren't taxed at title transfer, what about the lumber that goes into them? Costs go up on new homes putting pressure on builders.

I'm not taking a position on the "Fair" Tax, just reacting to the title. Fair is in the eye of the beholder.

PS ... why not both?


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