Not a new idea but abolish the IRS. Collect a national sales tax. It will encourage saving over spending. Make food exempt.
No - food cannot be exempt.
âThe Fair Taxâ proposal was written for this, and they get it right. We need a PREBATE program which sends all LEGAL citizens amd tax paying residents a preemptive rebate each month for the taxes up to poverty levels.
This make the fair tax progressive, without losing the taxation on the exorbitant food costs spent by the extremely wealthy.
Plus, it ensures that if illegalbaliens are here, they pay MORE into our tax system than legal citizens and resodents who get that prebate.
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You could make the sales tax even more progressive and attractive to middle income families by having the tax % start lower and increase at certain cost points for individual items. For example, instead of a 23% across the board sales tax, maybe thereâs a base rate at 17%, but then maybe it increases to 20% for any single item over $100, 25% over $1000, etc., with a cap at some point, of course. I donât know the exact rates it would need to be, thatâs up to the economists, but you get the idea. That way, very expensive and unnecessary luxuries, which wealthy people can afford and can choose to buy, would bring in even more of the cut. Iâm not wealthy, but I make this decision every time I decide to vacation. 
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I see this method becoming as cumbersome and complex as the current IRS.
Solution needs to be simple. Strive to be equitable, Striving to be âFairâ is a trap.
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Iâve been thinking about this for years. I believe this is a good idea because everybody has to buy something. I do feel that food, clothing, toiletries, and medicine should not be taxed
Food, clothing, etc. - those are things which the rich consume far more of than the poor. Those must be taxed. Plus, not taxing some thing allows for more fraud and abuse.
The answer to this is the prebate.
If the cost of taxes for food, clothes, and other necessities are pre-imbursed to people up to the poverty level, then the necessities ARE effectively untaxed, but if you buy more than that, its taxed.
The problem with this is that unless we cripple the ability of the Fed to inflate our money supply, eventually everyone will be paying the highest rate of taxes (unless of course you index the price ranges to inflation, though that could also be manipulated by dishonest statistics on inflation).
I would say that a national sales tax with a prebate on those taxes up to the amount that would be taxed for total purchases for a family of that size to survive is better. You could even raise more money if you apply the sales tax to the sales, trasnfer and trading of stocks
A national sales tax becomes individual and corporate choice. Money is spent and it is taxed. No one hides income because it doesnât matter. Buy a MercedesâŚpay a higher tax than the guy who buys a used car.
Letâs build a plan that includes no sales tax on food and perhaps some other daily life items that doesnât hurt the poor.
How to treat corporate taxation, if different, should be transparent.