Like Michael Schrage, I'm in favor of a 2% transaction tax on credit card purchases, "Plastic Tax Could Help U.S. Credit Line" (Oct. 11). What a great way to cut down on consumer debt and pay off the national debt.
According to Schrage, individual credit card debt in 1989 was $354 billion. Consumers have been encouraged to use plastic just like Congress has been encouraged to spend money on programs to improve our nation: education, health, welfare, defense, transportation, etc.
Individuals want new couches, cars, clothes. The government wants a new plane.
The only problem is that individuals as well as Congress can't pay off their debts. A 2% transaction tax would help. Consumers would be encouraged to switch to cash or checks, thus spending only what they could afford to pay at the time.
The 2% tax would go to pay off the national debt. It's a start toward curbing consumer credit, although it may take a decade for benefits to be noticeable.