Replace Federal Income Tax in Favor of a National Sales Tax

Economy
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This proposal advocates for eliminating the federal income tax and replacing it with a national sales tax. Supporters argue that the current system, which includes corporate and individual taxes, burdens consumers by embedding taxes in the price of goods. With a national sales tax, the tax burden would be transparent, as every purchase would contribute directly to federal revenue.

Key arguments of this policy include:

  • Transparency and Accountability: Unlike income taxes, where hidden handouts and loopholes exist for corporations and industries, a flat national sales tax would require Congress to account for every percentage of tax, similar to how local cities manage sales taxes. This transparency would curb political manipulation of tax law.
  • Universal Tax Collection: A national sales tax would capture revenue from all individuals, including those whose income is currently unreported to the IRS, such as drug dealers, gamblers, and undocumented workers. This would ensure everyone contributes fairly to federal revenue.
  • Citizen Control: Supporters propose that the percentage of the national sales tax should be subject to public voting. This would give citizens direct control over how much they are taxed and force politicians to justify any proposed tax increases.

By shifting to a sales-based tax system, the policy aims to simplify federal taxation, reduce government influence over personal income, and ensure a broader, more equitable tax base.

6 Likes
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Sounds a lot like the fair tax except that the IRS is eliminated and the sales tax is collected by the states.

2 Likes
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Yes, it pretty much is I should have added the prebate system because, Critics of The Fair Tax often raise concerns about how the burden of taxation might shift to consumers, especially middle- and lower-income families, despite the prebate system. However, The Fair Tax prebate system would ensure middle- and lower-income families aren’t unfairly taxed on essentials. The monthly rebate would cover taxes on necessities up to the poverty level.
Additionally, eliminating payroll taxes means workers get more take-home pay, and everyone—including wealthy consumers and tourists—contributes to the tax base through their purchases.