I totally agree. A national sales tax on everything except groceries
makes so much more sense than taxing income. The best part is
visitors to this country get to pay too (a small component but a
feel-good one for us nonetheless)! The paper I saw some years ago
about this said it would replace both personal income tax and
corporate taxes. It would need to be something in the 17% range,
which sounds huge but without corporate taxes which currently add a
significant cost to goods and services, prices would come down. So
much of that 17% gets immediately offset by lower comsumer prices.
There would also be a rebate system involved that would emulate the
current low-income zero tax bracket. All citizens would get an annual
check, something like $1000/adult and $500/child. That way people on
the low end (who don't pay taxes now) continue to effectively pay no
tax. Since they can't afford to buy a whole lot anyway, the
$1000/$500 rebates offset all, most, or even more than the sales tax
they pay during the year. All citizens (regardless of income, which
doesn't even need to be reported, thus not cheated on) would get the
same rebates, but the more you spend the less it helps you (just like
the current tax brackets that are based on income).
Another thing I'd like to see changed is that all methods of purchases
should be taxed. There's no reason for mail order or internet
purchases to be tax free. I assume it's that way now simply because
sales taxes are a state thing, not federal, and it's just difficult to
implement cross-state sales taxes. But if there's a federal sales
tax, there's no longer a reason for states not to collect their taxes
as well.
The biggest advantage overall is wiping out all the deductions and
loopholes that have been built into the system by Congress over the
last 70 years. The people who can take advantage of deductions love
them, but they need to realize that every tax excepmtion added to the
code means more tax has to be collected on everything else. Income
tax rates are WAY higher now than they would need to be if there were
few or no exemptions.
···
--- In FREEvpFREE@yahoogroups.com, Dan Paymar <Dan@O...> wrote:
>------- Forwarded message follows -------
>Since only about 52% of the people pay all the income
>taxes it's no wonder it's polarized. I personally
>think tax on income is absolutely wrong. IMHO,tax on
>consumption is the only fair method.
At last, a political message here that I can agree with. With a flat
sales tax, everyone pays in direct proportion to their style of
living. If a person or a company buys a yacht or airplane or builds a
big fancy house, there is no way to avoid paying a big tax. If it is
desired to make it easier on the poor, make food exempt. But only
necessity types of food should be exempt. Fast food, prepared foods,
soft drinks, candy, snack foods, etc., should NOT be exempt. Taxing
consumption instead of income also encourages conservation.
Dan