Originally Posted By: Jim_
That's what I said. They'd have to add a sales tax to make up for it, but those that are better off would be paying more of their fair share instead of jumping through loopholes in the State tax.

Well that depends on what they exempt or not...
example if you exempt necessities like groceries , health needs, then maybe it could be fair. BUT if you tax everything, the poor and middle class will pay sales tax on 100% of their disposable income where as the more well to do would pay less because they stash some into savings and investments.

Also there is a problem with focusing taxes primarily on consumption. Consumption is what drives the economy... my consumption is someone's else's income ! (From Krugman's book - End this Depression, Now!). You stifle that and you choke your economy and jobs too boot ! not too smart.

Thing is Jim, as you know - there is NO GOOD answer ! grin
David (OFI)