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Flap, my only thought would be that this would create an incredible black market for goods.
With the internet today, people would be able to buy most high end goods overseas and avoid the tax. Mexico and Canada would have a huge boom in their retail sector. In the end, I think this would punish the retail stores, their suppliers and employees.
I'd like to see just a flat tax, across the board, no exemptions, one form, with 3 lines, your income, your tax and how much you owe.
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