Sales tax only will simplify tax filings so much since retail companies should be the only ones required to file an IRS return. It could cut the IRS in half easily and simplify the complicated tax filings. I’m all for it and I’m a retail business owner. Possibly with no tax on food and essentials and maybe a graduated rate that taxes more for high dollar luxury items. This will lessen the tax burden on everyday citizens and put more of the tax burden on the rich.
2 Likes
But, you wouldn’t be paying income tax , which at the end of the day is in the same ballpark. People will have more control over the amount the government gets by deciding what to buy, or not to buy.
2 Likes
If you do a flat sales tax we could pretty much defund the IRS. 10% federal tax on every purchase would make everyone pay.
4 Likes
this would be the only way to get rid of tax evasion
2 Likes
a 5% national sales tax in leu of a 33%income(average) tax would generate more money for congress to spend - because these dollars would be taxed infinitly, not just once. Thats how sales tax works. Transactional taxes are performed over and over again. There is not a limit. With people able to have more money in their pocket because the income tax is abolished, there is so much more money going around our economy and getting taxed(5% national sales tax) that revenues would be tremendous without hurting any american’s pocket book.
1 Like
The income tax was enabled by constitutional amendment. You can’t swap it out with a sales tax without once again amending the Constitution. What would likely happen is fed gov would implement a sales tax on top of the income tax!
A better solution would be to reduce the federal government to only those powers enumerated in Article 1 Section 8 of the US Constitution.
Before the income tax amendment, average Americans had a total tax burden of ~6% of their income. It’s ballooned to 33% as the government grew since then. For comparison’s sake, Medieval serfs faced a total tax burden of ~33% of their yearly production.
1 Like
5% would do the trick, totally agree. Transactional taxes are exponentially better at generating revenue than a one time income tax that generates no surplus and reduces the incentive to work more.
1 Like
So you think the elderly who spent their entire lives paying income taxes should now pay tax AGAIN on their life savings that they already paid tax on once? Though there might be a good argument for your plan it is not fair for those who already paid income tax on their savings one time already. There is no fair way now to implement you plan.
2 Likes
The Europeans use a value added tax system which has some real positives
-
As someone else stated, everyone pays with those buying more expensive things paying more tax.
-
When you buy something, the VAT is right there on the sticker price so everyone knows exactly how much tax they are paying and every purchase reminds you the cost of government.
-
I think #2 would apply pressure on congress to contol spending.
-
Someone implied that it would be difficult to set up. I disagree. There are so many countries that use VAT, that there are successful models to follow.
3 Likes
Why would you tax an investment into our economy??
1 Like
Trump is planning to have no income tax. Instead it will be tariffs. Saudi does this already and citizens never pay income tax.
3 Likes
All expenses are sent downstream to the customers.
1 Like
How can we call ourselves the land of the free? I fully agree with a flat tax or national sales tax. Enough is enough! Here are the 97 taxes in the US tax code:
- Air Transportation Taxes
- Biodiesel Fuel Taxes
- Building Permit Taxes
- Business Registration Fees
- Capital Gains Taxes
- Cigarette Taxes
- Court Fines
- Disposal Fees
- Dog License Taxes
- Drivers License Fees
- Employer Health Insurance Mandate Tax
- Employer Medicare Taxes
- Employer Social Security Taxes
- Environmental Fees
- Estate Taxes
- Excise Taxes On Comprehensive Health Insurance Plans
- Federal Corporate Taxes
- Federal Income Taxes
- Federal Unemployment Taxes
- Fishing License Taxes
- Flush Taxes
- Food And Beverage License Fees
- Franchise Business Taxes
- Garbage Taxes
- Gasoline Taxes
- Gift Taxes
- Gun Ownership Permits
- Hazardous Material Disposal Fees
- Highway Access Fees
- Hotel Taxes (these are becoming quite large in some areas)
- Hunting License Taxes
- Import Taxes
- Individual Health Insurance Mandate Taxes
- Inheritance Taxes
- Insect Control Hazardous Materials Licenses
- Inspection Fees
- Insurance Premium Taxes
- Interstate User Diesel Fuel Taxes
- Inventory Taxes
- IRA Early Withdrawal Taxes
- IRS Interest Charges
- IRS Penalties
- Library Taxes
- License Plate Fees
- Liquor Taxes
- Local Corporate Taxes
- Local Income Taxes
- Local School Taxes
- Local Unemployment Taxes
- Luxury Taxes
- Marriage License Taxes
- Medicare Taxes
- Medicare Tax Surcharge On High Earning Americans Under Obamacare
- Obamacare Individual Mandate Excise Tax
- Obamacare Surtax On Investment Income
- Parking Meters
- Passport Fees
- Professional Licenses And Fees (another form of taxation)
- Property Taxes
- Real Estate Taxes
- Recreational Vehicle Taxes
- Registration Fees For New Businesses
- Toll Booth Taxes
- Sales Taxes
- Self-Employment Taxes
- Sewer & Water Taxes
- School Taxes
- Septic Permit Taxes
- Service Charge Taxes
- Social Security Taxes
- Special Assessments For Road Repairs Or Construction
- Sports Stadium Taxes
- State Corporate Taxes
- State Income Taxes
- State Park Entrance Fees
- State Unemployment Taxes (SUTA)
- Tanning Taxes
- Telephone 911 Service Taxes
- Telephone Federal Excise Taxes
- Telephone Federal Universal Service Fee Taxes
- Telephone Minimum Usage Surcharge Taxes
- Telephone State And Local Taxes
- Telephone Universal Access Taxes
- The Alternative Minimum Tax
- Tire Recycling Fees
- Tire Taxes
- Tolls
- Traffic Fines
- Use Taxes
- Utility Taxes
- Vehicle Registration Taxes
- Waste Management Taxes
- Water Rights Fees
- Watercraft Registration & Licensing Fees
- Well Permit Fees
- Workers Compensation Taxes
- Zoning Permit Fees
8 Likes
the problem with sales tax is that there will always be a committee arbitrarily deciding what NOT to tax. ie: tax beer but not soda, while soda is arguably less healthy. tax system worth considering is a Single Land Tax, which is both voluntary & visible.
1 Like
I have been in favor of a national tax ever since out Tax Day Tea Party – that would require a Constitutional Amendment, since taxes were imposed by Amendment 16. The replacement Amendment should require voter approval for any future changes in national sales tax rates. That forces Congress to do their job- produce a valid, on time budget so that any requested tax increases can be put on the Nov ballots.
2 Likes
I would be for that on items that don’t include a year after year tax on owned property. I would be willing to pay a one time tax on vehicle or home, but not year after year like we have now.
1 Like
Yes!
1 Like
I am not in favor of this, but here is why. I feel this will still require a bloated system to manage. Instead, I favor a flat tax of 10% for ALL residents of America with no deductions or reduction schemes. Nothing more. The only group that should not be taxed in this plan are our senior citizens over 65 living solely on small pensions and social security. This only requires a way to collect this 10% and can easily be managed through our current deduction system. It also ensures that Congress (and remember the government has no money of its own) has a reasonably fixed income too.
1 Like
That is a great list. Thanks for sharing.
1 Like
Exactly!! No taxes. Done!!
1 Like