Consumption Tax

The basic rules of economics say that, the more expensive a product, the less of it will be purchased on a supply and demand chart. But who needs economics when you've got a massive, self-created pension crisis to shovel money at these days?

The government needs your money. And the easiest way for them to get money into the coffers is to target the biggest part of the U.S. economy: The consumer economy.

Bring on the consumption tax, a percentage or nominal fee on every single purchase made by the consumer. In the United States, the most common form is a sales tax, while in Europe, you're more likely to face a value-added tax.

So...let’s say you live in Chicago. You buy a candy bar for $2.00 on Michigan Ave.

On top of that two bucks, you pay 10.5% in sales tax, bringing your total to $2.21. That 21 cents allegedly goes to the state and local government to help them plug their ever-expanding budget deficits. In reality, your 21 cents have been flushed down a hole, never to be seen again.

It's a great place to live.