Why not abolish the income tax and implement a national sales tax?

Question

The more you spend the more you pay. Would be kinda hard for the lower income people to pay more than the rich?

Answer 1

It’s called a regressive tax, meaning that the poor pay more (proportionately) than the rich. The poor spend all their money on food, clothes, etc and save nothing, so all of their income would be taxed (except rent/mortgage payments). However, the rich invest and save, and therefore less of their income would go to taxes. Income taxes are a progressive tax, meaning the more money you make, the more you pay.

Answer 2

I can't believe the people arguing about how it would hurt the poor the most. What GARBAGE! If that was true then why do ALL 50 STATES implement a sales tax?!?! People are so F_ing stupid, no wonder they vote for Democrats.

All you have to do is exempt food, clothing, and housing from the tax, just like states do. This is essentially a luxury tax. That way, the poor don't pay taxes, only the rich do because they are the only ones that can afford luxuries.

The truth is, that anyone with a brain knows a national sales tax is a good idea. Only the politicians oppose it because then they'd loose the ability to socially engineer us. If they can't give individuals, or companies tax incentives (like the current system) then they can't buy votes or try to shape our society. This is the ONLY reason the politicians won't implement it, so they can keep power.

Answer 3

1 Sales tax is 'regressive' in that it affects middle class and poor more than an income tax does. The more money one earns the less proportionally one spends on 'stuff'
2 By far more important however is that if we implement a national sales tax (value add tax, whatever), we'll end up with that AND income tax within a few years and overall tax rates will be higher. Gov't will grow to fit the new income stream and it will thenn be impossible to do without it. California already has both of these taxes set pretty high and there is not sign of that ever being reversed.
3 Once add national sales tax, can adding national property tax be far behind?

Answer 4

BETH B is a moron. The fair tax initiative which would eliminate the income tax, abolish the IRS, and replace it with a national sales tax, would allow all of us, including the poor, to keep our entire income. It would also abolish social security, and allow us to invest our money in whatever manner we chose.

The rich, which currently have tax shelters of various kinds, and who can write off as business expenses, many, many expensive items, such as their automobiles, planes, boats, etc., would find those items now taxed upon their purchase without any tax write offs on their income taxes, as the income tax would be gone.

In addition to totally removing the tax burden from the poor, the fair tax also provides a monthly stipend from the government, for the basic necessities of life, such as food shelter, clothing, etc. A check, or a credit would be sent to those poor, who qualify, in an amount determined by the size of their family.

So let's see: The rich would have no tax shelters and the poor would be able to keep every nickel they earn. SO BETH B, how would the rich get any richer with a national sales tax that replaced the income tax?

Answer 5

With the size of the Tax lobby out there - specifically the tax lawyers, accountants, bookkeepers and the like - I really cannot see the current taxation method being scrapped for something that would actually make a little sense, such as a flat tax or a national sales tax.

Big business lobbies hard and pressures even harder - the clowns in Washington want their perks and want to keep getting elected (so they can keep getting their perks). So nothing will happen with this....alas!

Answer 6

What will happen is that lower income people will end up paying a MUCH higher PERCENTAGE of their income in tax - as usually they need to spend most of thier income to live.

Plus - you often get breaks on price (and therefore tax) if you buy in bulk. Generally, people who live hand-to-mouth will not be able to afford even that price/tax break.

As far as I'm concered - if 10% of the population hold 90% of the wealth - then should they pay 90% of the taxes?

Answer 7

National sales taxes are regressive, the hurt the lower wage citizens more then the upper brackets as the tax in a fixed percentage of the earning effect the buying power of the lower classes more.

Answer 8

I agree, I would also supprt a flat tax rate.

No refunds no deducs.

FYI - necesseities are NOT taxed, such as food ding dongs, so no the poor and the rich alike would only pay on items that are not related to those deemed necessary.

Answer 9

Considering the VAST amount of money that it costs the honest taxpayer in wages for IRS employees, and for large offices, computer banks, publications, jails to hold and feed tax cheats, etc., the national sales tax seems to make very good sense.

Answer 10

This has been discussed, and the conclusion is that it would hurt the poor the most.