Sales Tax Would Reduce Buying Power

The front-page article ''Radical Tax Reforms Gain New Attention,'' April 12, was intriguing, but the plan proposed by Rep. Bill Archer (R) of Texas isn't a desirable one in the United States. Eliminating the income tax altogether and replacing it with a broad-based consumption tax will only enhance the problems that the US is trying to combat. By raising the national sales tax to 20 percent, the buying power of many Americans will be drastically reduced.

Particularly, families on welfare, who do not have to pay any income tax, will be negatively affected by a 20 percent sales tax. This holds true for the less privileged in society in general. How is a single mother with several children, for instance, earning minimum wage, supposed to pay for food, clothing, and day care if we raise the sales tax to 20 percent?

Archer also doesn't seem to have considered the impact of a 20 percent sales tax on the number of tourists that annually pour millions of dollars into the American economy. One suggestion would be to adopt the European concept of a lower sales tax on essential products and a higher sales tax on luxury items.

Martine Kintziger

Oxford, Ohio

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK