Consumption Tax

is a Economic Policy centric issue

US Competivness in the Global Economy

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Ken (13)
Conservative - Republican
posted 108 days, 20 hours, 47 minutes ago
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US Competivness in the Global Economy

If you pay taxes, that probably means that you have a job that you get paid for. Since you aren't the only one who pays taxes then lets assume that your employer is paying in to Uncle Sam too. When the customer buys the goods from your employer they also get the high privileged to pay another tax to the government. Now when your employer sells their widget to a buyer located in another country they don't necessarily pay a tax directly to the US Government, they pay it in directly through the taxes that are paid to the US worker and his (her) employer. This makes our widget cost more on the world market and thus stagnates demand for expensive US produced goods. How is this good for the US Manufacturing companies and the jobs that go with them?

With the Fair Tax or consumption tax the end user is the only one paying taxes. This goes for the rich and everyone else. It eliminates the need to include taxes into the fixed cost for and item being produced and will make US goods more competitively priced in a global marketplace.

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