Many economists have been debating in the recent weeks regarding the effects that Consumption Tax would have on the current economy.
In a recently posted New York Times Article. Robert Frank theorized that a consumption tax would help the current economy, and that the only way to afford current debts and issues with the economy would be to levy taxes on additional products that are currently not taxed on the resale level.
Currently most retailers and small business operations are struggling to stay afloat and to regain profitibility. Would a Consumption Tax help these businesses? Probably not, by adding taxes to the products that are resold by these small businesses the already small profit margins would shrink even smaller.
Although many believe that the new administration should use this type of taxation to help our ailing economy it may in the long run hurt even more businesses and force many more to have to close their doors permanently.
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