Replace income, property, capital gains, and similar taxes on money earned actively or passively - and on real property - with a national sales tax. It will serve two purposes.
First, it will encourage saving. Individuals will be able to save dollar-for-dollar earned, and become better stewards of their money. It will also assist banks where savings balances are loaned in multiples, bringing economic growth.
Second, if revenue gathered through the tax code is simplified, it will help individuals understand the spending habits of government better. Coupled with a rededication to fiscal responsibility at the federal level, a simpler tax code will make it immediately obvious that the government is spending more than they should - the national sales tax goes up, people will respond at the voting booth. If it goes down, we all know that we’re on the right track. At present, we have little insight into government spending because of conflicting media reports and the deeply byzantine spending and revenue avenues.
Most states have a sales tax, and much can be emulated from them.
Exclude necessities from the tax. Food. Clothing where the cost per item is under, e.g., $200. This approach will ensure that the tax is not regressive.
A national sales tax will also be more efficient in collecting monies earned, for example, through criminal activities. At present, such undeclared income is not taxed (obviously) when received. And if the person goes to a non-sales-tax state such as NH, they can spend it without any state-level sales tax. A national sales tax would not stop criminal proceeds, but it would collect a portion when spent.
It would also catch monies earned and subsequently spent where the earnings are presently under the table. The govt’s present approach is to intrude on our privacy by tracking all transactions $600 or more.
A national sales tax would also remove the need for individuals to file annual tax returns, saving (one estimate for national average) 13 hours + $240 to file one return.