A different approach to taxes. Would it work for all of you?

Question

Eliminate the income tax and instead create a 10% sales tax on ALL goods, including food and clothing. According to figures this would double the amount paid into income tax. Believe it or not people this has been brought up by our lawmakers. How would you all feel about it? I wouldn't mind the 700 dollars a month I pay in income taxes on my check. That is damn near a house payment.

Great answers people.

Answer 1

I like http://www.fairtax.org/ better. But, it is the same basic idea.

To the person that said it would create an underground economy: We already have one under an income tax. Purchases are harder to hide than income.

To the person that said the rich only pay a small percentage for taxable goods, all goods and services would be taxed under the 'Fair Tax' therefore, the only way to avoid it would be to not spend money.

Someone mentioned Steve Forbes. His idea is a flat rate income tax. I like it better than the current system, but I still prefer the sales tax.

Answer 2

What would work for me is an elimination of about 70% of gov't spending at the federal level. It peeves me that I have to pay for a bridge to nowhere in Alaska when I live in Ohio. Same with multibilllion dollar repairs to the levees in New Orleans or subsidizing the construction of low income housing in Chicago. OORRR (while we're on the subject) the construction and storage of about 200,000 unused travel trailers in Louisiana for FEMA. We could go on about wasteful federal spending that has a narrowly local impact and never even get to the military stuff that should be one of only a few things that congress funds on a national level. REDUCE MY TAXES!

Answer 3

No.

Very rich people spend only a tiny percentage of their money on taxable goods, so in effect what you'll be doing is massively reducing the tax rate for such folks (like an 80% reduction) while you pile extra taxes on the poorest Americans.

Plus, for such a system to be anything close to revenue neutral, the tax rate would have to be something like 30%. This means an enormous tax increase on the poor, a small increase for the middle class, and massive break for the rich.

The numbers on such plans just don't add up.

Answer 4

I am all for a fair tax and the interesting thing about the fair tax is, if you actually do some research, it will raise the price on goods and services very little if any.

Answer 5

I believe it was Steve Forbes who brought this up when he was a presidential hopeful. I was all for it then and am all for it now. This way we would have some control over how we spend our money. As it is, the government takes your money from you for the projects they want to promote, to give themselves raises and perks, buy votes and maintain control over 'we the people'.

We are just pawns to both parties and the powers to be will do anything to maintain that power. Too bad.

Answer 6

That would be interesting to say the least, i would need some more info. to decide though. But as a college student, with not that large of an income, it would hurt me probably more than it would help

Answer 7

I have looked into this, it is better than what we have now but would this system create an underground economy to avoid taxes. Please let me know how to counteract this?

I favor the flat tax but I am still intrigued by the system that you recommend but I have little information on this.

Anything else would be better.

Answer 8

That would work for me. But the Government will be a loser.
Is every sale recorded?
Do people spend all their money on goods, even if you include food and clothing.
What about money spent on services (legal and illegal)?
What about money spent on illegal drugs?
What about money that some people spend on illegal sex etc.?

Answer 9

It's called the fair tax, and it will never happen. Too many politicians, and too many lobbyist would have to pay.

Answer 10

Works for me.