Quote:
Originally Posted by Levin
There's no more income tax. That essentially means the consumer decides how much in taxes he will pay b/c the government doesn't take out a mandatory slice beforehand. I see that as an opportunity for a net gain. Instead of the gov't automatically taking 30% out, I now have discretion how much I pay out in taxes through my consumption choices. And, as for myself, I would consume less and save more in order to capitalize on the opportunity for a windfall.
That's what we'd been discussing in previous posts. Is that reasoning entirely off?
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Perhaps you would spend less, but most people have the natural tendency to consume as much as they can. With more money in the pocket, they'll spend it.