Replace income and capital gains tax and replace them with tariffs and a national sales tax(consumption tax). Exempt discount brand “essential” products from the sales tax.
This will allow the poor, and all people, to be able to avoid taxes and save money whenever they choose. Consumption tax incentivizes the saving and reinvesting of money back into companies and investments.
update
Here is a good book on the subject:
The FairTax Book: Saying Goodbye to the Income Tax and the IRS
By Neal Boortz and John Linder
It is: Lessens tax burden on end purchaser, lessens tax burden on individual companies as it goes through production
It isn’t: Tax rates per transfer will increase end purchaser’s burden by making product more expensive. (10+tax then (10+tax)+price increase+tax then so on and so forth.)
I’d rather see a fix for tax burdens on income and wealth than creating a whole new system that can get screwed with and create a bigger, more expensive problem later.
Don’t exempt any products or services from tariffs. All imports should carry a base tariff of 200% to begin to eliminate income, capital, and gift taxes.
Start the transition with a base tariff of 200% on all imports of goods and services. No exemptions for anything.
Add a 10% national sales tax on all goods and services. No exemption for anything.
If a surplus is generated, we reduce the debt first.
If we are debt free and a surplus is generated, it is deposited in individual retirement accounts for every citizen in equal amounts and cannot be accessed or encumbered for any reason prior to 70. Any remaining balance can be transferred to retirement accounts of heirs without being considered part of any taxable estate.
You have to figure out how to make this fair to retirees and those who are close to retiring. These people have paid income taxes their whole lives and are now on fixed incomes. They would be crushed by an increase in cost of goods and services without the benefit of having an offset in the form of eliminated income taxes.
the way to do this is not pick apart the tax system piece by piece. it’s to reinvent how we tax. Repeal the 16th amendment. End taxing income. Why should we tax income and incentivize people to not make as much money?
Next install one simple Fairtax. It’s a tax on new goods and you can read about it at FairTax.org. It gets rid of ALL federal taxes. Ideas around VAT taxes on luxury goods just further the divide between Americans. One tax we all pay (unless we are too poor to pay it in which case we don’t pay taxes) is the way to go.
National sales tax! The savings getting rid of IRS and procedures and properties would be massive. Everybody even corporations pays their fair share. Covert surveillance of citizens earning and spending ends. The poor would pay their share based on their spending and could be welcomed into the financial structure of the country. They would then have a stake in the budget and outcome. States collect the sales tax and keep their share sending federal their share. Sales tax is the only tax that provides equal protection required by the Constitution.
Along with replacing income and capital gains tax, there should be a massive reduction in government spending, followed by a balanced budget rule.
Taxes and fees for driver’s license, registration, real estate taxes, and the like should also end or be very limited.
We have been unfairly taxed for things that should NEVER have been allowed. Think of all the license fees and additional tax you are charged. None of it should be allowed to continue.
I agree, the IRS is a debt collector for the Federal Reserve. Get rid of them both, because they are unconstitutional and all the IRS monies go to the foreign banking cartel and have never went to the American people.