candycorn
Diamond Member
I disagree. I think that if every entity with a legal right to engage in commerce knew they were being taxed at 7% on their income and 7% on their retail consumption it would add a great deal of certainty to the market place.
There may be a few lawyers and accountants looking for work, but they're usually smart. They'll adapt.
You'll have a tough time selling that to a business like a grocery store that operates with like a 3% profit margin. All business is not equal and all do not share equal risk and investment. It is a pretty good prescription for running all the rest of our manufacturing base out of the country though.
Why? Why would an understandable and simple tax rate scare away manufacturing when the lawyers wet-dream we call a tax code now doesn't seem to?
For one thing, you can be undercut very easily. If the US is charging 6% income tax on what you sell, move your business offshore to a country that will tax you 5%. Not that hard to understand.
Simple is usually better; not always.