DYSPEPSIA GENERATION

We have seen the future, and it sucks.

These 3 Charts Show Why the US Tax Code Is Just Absolutely Killing the Us Economy

25th November 2013

Read it.

It’s pretty simple: Income taxes penalize saving. That’s bad. Savings and investment are critical to long-run economic growth.

Consumption taxes do not penalize savings. See, under an income tax, workers who save to consume in the future are taxed more heavily than a worker who consumes today. Replacing the current income tax system with a consumption tax would boost saving, which would increase the capital stock and promote long-run growth.

My, what a surprise! Aren’t you surprised? I’m sure surprised.

2 Responses to “These 3 Charts Show Why the US Tax Code Is Just Absolutely Killing the Us Economy”

  1. RealRick Says:

    The problem with enacting a consumption tax lies with Washington. The Crust doesn’t like it because it will increase their taxes and the general populace doesn’t want it because they’re conviced the greedy bastards in D.C. would simply ADD that to the current taxes so they would have more pork to pay back their wealthy supporters.

  2. Tim of Angle Says:

    And you can’t say that they’re wrong….