Of course, a consumption tax is regressive not progressive, and falls disproportionately on the poor and middle classes.<quoted text>
Do away with all federal taxes and just have a progressive consumption tax.
You are wrong about that. The 47% number refers to income tax only. If you look at total tax burden, the lowest 20% pay 19% of their income in taxes. The top 1% pays 33% of their income in taxes.<quoted text>
That way the 47% of Americans who pay absolutely nothing in federal taxes will have their money in the pot too.
The consumption tax may seem appealing because it is easy to understand, and no one likes preparing their income taxes. But, consider the effect on old folks like myself:
"...if you just say scrap the income tax and replace it with a sales tax or a value added tax, then it would be a huge tax increase on old people, old people who are paying tax on their income as they're earning it, thinking that when they got to retirement they could spend money and they'd be paying a dollar for everything they bought.
If you replace, Bill actually did some estimates that if you replaced all of our taxes with the sales tax, the sales tax rate would be something like 60 percent, so you could just imagine getting into retirement and finding out the price of all the goods you're buying is now 60 percent higher than it was the day before. That would be like a 60 percent tax on all of the money that you had saved up over the course of your life."