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Old 2012-10-19, 20:13   Link #1616
Xion Valkyrie
Senior Member
 
 
Join Date: Mar 2007
Having ONLY sales tax sounds simple on paper, but in reality it can be very complicated when you take into account that you need to have separate tax tiers for different types of goods. You'd need to have higher taxes on luxury goods but keep essential goods close to tax free.

Determining what goods fall into what brackets will end up being just another battle ground for special interests, where certain things will end up having low sales tax just so certain groups can move their money around freely. Also, corporations would try to put higher taxes on competing products to put their competition out of business.
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