Quote from: mouse on July 07, 2011, 12:19:41 PM

3. Its totally unfair. Take an unemployed person for example. Currently his income tax is zero. But your going to add the income tax of the countries wealthiest people into the basic cost of goods, so that his bread and milk costs will go way up? Thats going to benefit the high income earners greatly.

In many countries I believe income taxes were introduced as temporary measures during wartime, prior to that I think governments got a lot more of their revenue from import tariffs. I'm not sure I follow how a consumption tax is inherently more unfair. For a different example, say someone inherits enough gold to more than cover a comfortable existence for his entire life. If progressive income taxes are the only government revenue collection, then this person could easily pay little or no taxes his entire life and never have to work, assuming he sells off a small enough amount every year to stay in a low tax bracket (over the table at least). The rest of his vast savings don't count as income until he sells them. Under a pure consumption tax model he would at least pay something.