We should move to a strictly sales tax based system. This would get rid of every single other tax that exists. Income tax, death tax, capital gains tax, property tax, and any others that I can’t recall at the moment. Capitalism doesn’t care about how much you earn; only how much you circulate in the economy. The sales tax rate shall be the same percentage across the country.
Let’s make the math easy 40/40/20. 40% to the federal government. 40% to the state government. 20% to the local government.
At the moment of transaction; the merchant processor will take the sales tax and send it to the Federal government. From there the federal government will take their assigned 40% and send the remaining 60% to the state where the transaction occurred. The state will then take their 40% and send the remaining 20% to the local government of where the transaction originated.
This puts the burden on the government to do what it supposed to do which is collect and distribute the funds it receives correctly and takes the burden off of business owners. Transactions already have this information built into the merchant portals.
The federal government should have no problem functioning using 40% of the sales tax of the country. State governments should have no problem functioning with 40% of the sales tax generated within the state. Local governments should have no problem functioning with 20% of the sales tax generated my their local businesses. If any of these groups have problems doing so; they need to get rid of useless spending.
Example: sales tax percentage set to 20%
Customer purchases an item worth $100. Sales tax makes this purchase $120. At the moment of transaction; $20 is sent to the federal government. The federal government collects its $8 and sends the remaining $12 to the state. The state then collects its $8 and sends the remaining $4 to the local government where the transaction originated.