Peter Schiff - Income tax vs. Consumption Tax

[TheBlackPeterSchiff]

YouTube - Income Tax vs. Consumption Tax

[low preference guy]

good. i want all liberals to watch this.

[mrsat_98]

the poor will pay to much.

[sratiug]

The only federal tax we should have is a flat tariff phazed in over a period of years as internal taxes and the IRS are phazed out of existence. A tariff only system worked for Jefferson and it will work again for us now and put Americans back to work.

[RyanMoran]

A consumption tax would be better than the current system, but I think the "fairest" tax is a simple flat income tax. No matter your income level, you pay 15% with no exemptions or writeoffs. Of course, that would be politically unpopular because it's so simple, and you couldn't have special interest breaks.

[Mike4Freedom]

Nevermind

[sratiug]

A consumption tax would be better than the current system, but I think the "fairest" tax is a simple flat income tax. No matter your income level, you pay 15% with no exemptions or writeoffs. Of course, that would be politically unpopular because it's so simple, and you couldn't have special interest breaks.

Income tax causes the prices of American goods to go up (since employers must pay you enough to pay the government, and pay their own income tax) and subsidizes foreign imports from people that pay no American taxes at all causing all our jobs to move overseas and impoverishing our nation.

A flat tariff by constitutional amendment would naturally be immune to special interest lobbying.

[G-Wohl]

It's disappointing - yet completely understandable - that Peter had to advocate any tax whatsoever.

[winston_blade]

At least this would encourage saving rather than discourage working.

[hellsingfan]

At least this would encourage saving rather than discourage working.

Government isn't run on charity.... And he was talking about replacing a intrusive tax with a better form of taxation that is more efficient and less instrusive.

[slothman]

A consumption tax would be better than the current system, but I think the "fairest" tax is a simple flat income tax. No matter your income level, you pay 15% with no exemptions or writeoffs. Of course, that would be politically unpopular because it's so simple, and you couldn't have special interest breaks.

Why do people say a flat tax is better than a graduated tax?
Maybe a constant tax(everbody pays $100) is even better?

[G-Wohl]

Why do people say a flat tax is better than a graduated tax?
Maybe a constant tax(everbody pays $100) is even better?

No tax is better. Taxes are immoral, and the goal should be to cease coerced funding of government, leaving governmental funding into the voluntary hands of its citizens.

[Daamien]

the poor will pay to much.

Not necessarily. State consumption taxes are generally not applied to "staples" such as groceries and clothing. I would imagine a Federal consumption tax also exclude rent and real estate purchases as well as fuel. A consumption tax on discretionary spending would "hurt" everyone equally, not the poor disproportionally considering the poor do not make considerable discretionary purchases. Furthermore, it may encourage savings which would be a benefit of having a tax be consumption-based instead of income-based.

I agree that no federal taxation would be far better. An efficient limited federal government can fund itself on tariffs and fees. However, I would see a consumption tax as an improvement from the status quo.

[K466]

A consumption tax is the lesser of the two evils. Good video. I'm still not sure what form of taxation is best.

[TheBlackPeterSchiff]

A consumption tax is the lesser of the two evils. Good video. I'm still not sure what form of taxation is best.

No taxation

[slava]

I disagree with Schiff here. Progressive income tax is much more fair than consumption tax because rich people enjoy security and stability provided buy the rest of population. Government spending should be small but what is payed in taxes must be payed by rich.

[daSHiZZLE]

I don't agree with Schiff here either.

A consumption tax would further enrich the rich and impoverish the poor.

Forget the exemption for the poor on staples... the rich would buy cars and other value holding assets offshore.

[TheState]

Government spending should be small but what is payed in taxes must be payed by rich.

So we have a right to take the money the rich have earned but not the middle or poor? I feel I don't have a right to anyone's money but my own.

[sratiug]

A federal consumption tax would make every transaction in America a federal affair.

A flat tariff is a better consumption tax, it gives us free trade in America with no federal government intrusion since it is only collected at borders and ports. If uncle sam raises the tariff beyond what is reasonable it will produce less revenue because it can be avoided at least to some degree by buying American made products, or by smuggling, lol. The feds might also secure our borders if they depend on tariffs for their livelihood.

[Jordan]

Why don't people get this..

A consumption tax will tax again post-tax savings

So much for a Roth IRA, 401k, your post-tax money will be taxed again when you spend it.

Sorry seniors, you thought that annuity you invested in post-tax was enough? HA! We'll tax it again.

I don't know why people over look this fact. This would literally leave seniors starving, and devalue every post-tax dollar in every bank account.

[Daamien]

I don't agree with Schiff here either.

A consumption tax would further enrich the rich and impoverish the poor.

Forget the exemption for the poor on staples... the rich would buy cars and other value holding assets offshore.

They would buy their designer clothing offshore, their plasma TVs offshore, and their fancy cell phones offshore? I highly doubt that would happen and if it did they would have to still pay a federal fee for importing goods over a certain dollar amount which already exists.

[Daamien]

A federal consumption tax would make every transaction in America a federal affair.

Every transaction already is a federal affair due to you having to first pay taxes on earnings before you even get to decide what you want to buy. You are buying post-tax, not pre-tax... unless you happen to get paid in cash under the table or somehow find a way to have you and your employer not withhold any taxes from your salary. Therefore, I don't see the consumption tax as being any more evil. Rather, it gives you more control over your taxation because you can opt to save rather than spend whereas you can not escape taxes on earnings.

[Daamien]

Why don't people get this..

A consumption tax will tax again post-tax savings

So much for a Roth IRA, 401k, your post-tax money will be taxed again when you spend it.

Sorry seniors, you thought that annuity you invested in post-tax was enough? HA! We'll tax it again.

I don't know why people over look this fact. This would literally leave seniors starving, and devalue every post-tax dollar in every bank account.

The idea is to get rid of the income tax and replace it with a consumption tax, not to have them simultaneously. Therefore, all earnings would be treated as pretax. If you had an IRA or 401K, then too bad. The money in those accounts had the option to be invested, not just sit around until you wanted it when you were 65 years old.

[low preference guy]

I don't agree with Schiff here either.

A consumption tax would further enrich the rich and impoverish the poor.

Forget the exemption for the poor on staples... the rich would buy cars and other value holding assets offshore.

An income tax should not even be considered. It's an invasion of privacy.

[K466]

No taxation

Ideally!

[K466]

An income tax should not even be considered. It's an invasion of privacy.

Exactly.

[Taco John]

the poor will pay to much.

Uh, no they won't. This is a myth based on the idea that the public owns everyone's income.

[Taco John]

I disagree with Schiff here. Progressive income tax is much more fair than consumption tax because rich people enjoy security and stability provided buy the rest of population. Government spending should be small but what is payed in taxes must be payed by rich.

Government should treat all individuals as equals regardless of of their attributes, whether those attributes are race, sex, sexual preference, or even income. Government should not be in the business of discriminating against an individual because they earn more money than another individual.

[TheBlackPeterSchiff]

Food and energy should be exempt from the tax, the poor would be fine.

[Brian4Liberty]

Why don't people get this..

A consumption tax will tax again post-tax savings

So much for a Roth IRA, 401k, your post-tax money will be taxed again when you spend it.

Sorry seniors, you thought that annuity you invested in post-tax was enough? HA! We'll tax it again.

I don't know why people over look this fact. This would literally leave seniors starving, and devalue every post-tax dollar in every bank account.

Thanks for pointing that not so minor detail out!