Quote:
Originally Posted by Toymeister
Consumption tax = sales tax.
So the question boils down to do you want to pay your taxes with every non-food purchase or all at once.
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A consumption tax would apply to tourists but I would expect a consumption tax that could replace property tax would be quite high - I would think at least 10% if not more - so paying about 18%+ sales tax would probably reduce tourism.
I remember reading that NYC tried that a few years ago with an enormous increase in hotel taxes - and they got less money because people stayed away from NYC. NYC then changed the law back. You don’t want to kill the goose!
Also, property taxes are very consistent year to year. If we had a recession, consumption would be reduced so taxes would be reduced so school and other government funding could have wide variations from year to year.