Not OP, but I assume he/she means something like a consumption tax[0].
However, given that poorer people tend to spend more of their income than wealthier ones, unless such a tax is appropriately calibrated, it can be quite regressive.
In a nutshell: Poor people stay poor because they can't save. That is why income tax is repressive - it guarantees economic stagnation, since nobody wants to work for the man.
Spending tax means that, no matter who you are, you will pay your taxes if you want to purchase something, whether its a commodity or product or service.
The rich will still be able to be rich - in fact, there will be more rich people - but they won't be encouraged to spend any of it without sharing it in the form of taxes.
That’s cute but the economy is based on spending. Governments want people with some money but not enough where they’ll start to think they can stay at home playing the stock market. If the majority did that, society would collapse.
Also a version of that already exists in most countries, in Europe you pay around 18-25% of VAT in every purchase you make but income taxes tend to apply only if you make X amount of money which effectively means poor people don’t pay income tax.
>Governments want people with some money but not enough where they’ll start to think they can stay at home playing the stock market. If the majority did that, society would collapse.
People still need to eat and live their lives. They'll have more revenue for doing that if they don't automatically have to give half of it to government.
Taxing spending removes a repressive socio-economic influence on people among different classes of economic status.
Poor people stay poor because that way they don't have to give away half their income. This has a much bigger socio-economic impact than most middle-class taxpayers are willing to admit.
Not OP, but I assume he/she means something like a consumption tax[0].
However, given that poorer people tend to spend more of their income than wealthier ones, unless such a tax is appropriately calibrated, it can be quite regressive.
[0] https://en.wikipedia.org/wiki/Consumption_tax