Yeah, it’s true. Glenn Hegar, in what can only be an effort to prove he’s really ignorant regarding how the economy works, is advocating a 20% sales tax.
This is a great idea if you want to:
1) Readjust economic growth to a new, lower trend line (long term effect)
2) Probably cause an immediate recession and increase unemployment (short term effect)
3) Massively increase the number of poor people automatically (short term effect)
4) Cause extreme economic damage to the young (long term effect)
5) Further reduce the already shrinking middle class (long term effect)
A modern consumer economy (you know, Texas in 2014) can only properly function when those in the bottom 60% of earners (the largest number of consumers) can afford to buy goods and services. Part of the reason we’re seeing such a sluggish recovery is because incomes in the bottom three quintiles have not increased meaningfully and so those folks can’t spend… meanwhile, wealthy people have gotten much wealthier and, as predicted, aren’t making up for the lack of demand from the bottom of the socioeconomic pile.
Just looking at this tells you all you need to know about the uselessness of supply side economic measures in an economy with a massive demand gap, but that’s beside the point. What you need to take away from this is that Glenn Hegar thinks the best way forward is to create a recession and make a lot of poor people even poorer.
But don’t worry those of you in the top 40%. Eventually the pain will hit you, too.