Partisan hack Alan Greenspan on Thursday
endorsed a consumption tax, such as a national sales tax, or VAT, as a
partial replacement for the income tax.
Greenspan cautioned that there would be both political and administrative difficulties in moving toward a new national tax system. Simplification is needed, perhaps a hybrid between consumption taxes and income taxes, he told the President's Advisory Panel on Federal Tax Reform.
"In other words, don't try for purity," Greenspan said in response to a question from a panelist.
That's right.....Greenspan wants a consumption tax in addition to an income tax.
Now there may be merits to a consumption tax, but it's undeniably regressive. It's something I've given a great deal of thought to, and I'd welcome a discussion on it
elsewhere (in other words, start your own diary if you'd like)
But Greenspan sees a complete shift from an income tax to a national sales tax as politically unfeasable. So he says he wants a partial shift.
But all of us here know exactly which Americans would find their tax burden lightened by a lessened reliance on income taxes, and which Americans would find themselves burdened by their children's back-to-school clothes now costing an additional 20%
Addressing concerns about increased taxes on necessities like food, Greenspan said policy-makers could design a consumption tax that would exclude products mostly consumed by the poor.
That would be what, Alan? Dogfood?
And who weighed in today with a hearthy thumbs up (his ass) for Greenspan's musings? None other than Democratic Senator John Breaux.
The panel's vice chairman, former Sen. John Breaux, D-La., said it was important that the Fed chief asserted income and consumption taxes could work together.
"He said you could do both," Breaux said. "I don't think he endorsed it, but his saying that it can work, like many other countries have done, I think was a very significant statement."
Come on folks, this is a winner for us! The GOP wants to saddle you with an additional tax!