Proposal Summary
• National Sales Tax Rate: Propose a range of 20-25% on goods and services, with necessary exemptions for essentials and luxury items taxed at higher rates.
• Prebate: A monthly or annual prebate to low- and middle-income households to ensure the tax system remains progressive.
• Economic Growth: Emphasize that the shift to consumption-based taxation would encourage savings and investment, boosting economic productivity.
This approach aims to balance fairness, economic incentives, and revenue needs while reducing the complexity of the current income tax system.