Quote from dddooo:
It's easier to track underground goods than underground pay in the form of cash. Policing would be easier than the current system.
Huh? When every single business and every consumer is tempted to engage in cash-only, tax-free transactions and save 30-40%? When every single consumer starts ordering goods and services from China and Malaysia in order to avoid this huge markup instead of using local retailers/service providers. Good luck policing every single domestic and international transaction.
Its a wonder the United States even survived before the Fed passed the Income Tax.
How did that work?
Quote from dddooo:
the average consumer will immediately become a small government voter when they see directly how much the public sector takes from their household.
And now when they see 30-50% of their earnings deducted from their paychecks they don't? Come on! People reject the idea of a consumption tax for a lot of different reasons, that they don't now how much they pay to uncle Sam is certainly NOT one of them.
Yes and no.
Direct deduction prevents taxpayers from ever experiencing ownership of their money first hand.
Another small business owner in this thread echoed the same concept.
Its much harder to cough up money you own, rather than reqluinish something that was never really 'yours' to begin with.
Its very much psychological, but real all the same.
Once the conditioning surrounding the income tax is broken, Americans will watch first-hand, their own personal wealth get sucked up by that black hole we call Government - and then fight to reduce or eliminate it.