Should there be a national sales tax?

Question

I am asking if there should be a national sales tax implemented instead of the current taxing systems. and why or why not?

Answer 1

There are so many countless reasons I really want to fanatically support the idea of replacing the current system of income tax with a national sales tax. I am not going to go into details explaining all the benefits in support of the NST (also known as the Fair Tax Proposal & Bill HR2525), and I recommend anyone who is not already familiar with the NST to do a simple Google search to get a rundown on the basic concept, but I am going to list a few components that are of particular appeal to me:

The implementation of the NST would...
...mean a removal of the IRS.
...result in not having the IRS in my life nor having to account for everything I do to earn money.
...result in not having to file my annual list of income earning activities.
...mean being able to earn money, make money, send money, give money, receive money, and trade money without having to consider what the government thinks.
...be putting the disincentive on consumption and spending and removing the disincentive on earning and investing.
...prevent the government from passing unnecessary tax hikes and constantly having exuberant spending because of the immediate slowing of the economy do to price hikes (the NST causing gross costs to rise).
...mean not having to think about how I will be taxed when I make investments, and not having tax incentives and deterrents influence how I invest my own money.
...permit me to control how much tax I pay by directly controlling my consumption as oppose to my earnings (no one says, "pay me less").
...result is not having to understand an overly complex set of rules to calculate why I owe a certain amount of taxes.

Even having stated all these very desirable considerations, I cannot get around the massive flaw in the possible implementation of such a plan. The mere fact that anyone who has spent a lifetime paying tax and investing with after tax dollars would be subject to having all those earnings being tax all over again the moment the NST is implemented is enough for me to immediately view the tax as a very cruel and unfair idea based solely on its implementation. This is the one and only component of the NST that I have yet to hear anyone be able to successfully produce a solution for. There has been discussion on the possibility of using a rebate system to provide money back to those that suffer as a result of implementation, but then you have to ask, "at whose expense?". Surely on the outset a rebate system would provide money back to those that suffer, but the rebate in turn would have to be paid for at the expense of those who had not been suffering (via a higher tax presumably, thus raising the gross price of products that include the NST) and so therefore you merely shift the burden, not remove it. Had this plan been implemented from the start we might have a near perfect system, but the implementation issue is sadly so big that it even trumps all of the above mentioned benefits.

No matter how much discussion we have on what tax plan or system would be best for this country, the obvious elephant in the room is the fact that federal spending is out of control in the United States. The issue of taxation is merely a band-aid to an existing problem which if resolved would make the band-aid far less critical. If the government were able to get federal spending under control, would it really matter what system we used to collect taxes? If the federal tax requirements were reduced by 20%, no one could honestly justify a debate between an income tax or a consumption tax as being as important as the fact that the amount of taxes needed is 20% less.

It always sickens me how much focus is put on the collection of taxes and how little is put on why we have to collect most of them to begin with. No matter what political party you belong to or what viewpoint you have on social engineering, there is absolutely no reason why a tax discussion should not include a spending discussion. To do so is tantamount to the family who lives above their means and survives on credit cards but only talks about how they can make enough money to survive without looking into where they might cut some unneeded expenses that put them into the problem to begin with. Until we can turn the focus to spending instead of collecting, the entire matter is really a disgrace.

Answer 2

A national sales tax would generally hurt poorer families more than rich ones due to the fact that a larger percentage of a poor family's income goes to retail purchases than a rich family. As much as the general population hates to admit it, the rich actually pay more in taxes than the poor. The middle class pay the largest percentage and the national sales tax would probably mirror the amount the normally pay which would mean the poor would have to pay more and the rich less. This would further widen the gap from rich to poor and wouldn't affect the middle class very much.

Answer 3

No sales tax....why? This type of tax hurts the poor and the very poor. For example, many of us survive on Soc.Sec., benefits of $1000. or less per month, and even a %5 sales tax reduces that amount by $50. It is difficult enough to manage sometimes, without trying to do on even less. Do the math on any middle to lower income levels and see what the bottom line results will be. Best wishes

Answer 4

i've got heard this kicked around some however the undertaking i ask your self approximately is how ought to the taxes for good sized fee tag products be unfolded so somebody paying for 2 new automobiles and a clean abode would not ought to pay the completed tax on those products in that very same 3 hundred and sixty 5 days. yet another situation i could be in touch in is what is going to take place to each and all the taxes i'm paying on issues i purchase now? This national earnings tax is going to be paid out on suitable of all latest taxes. ought to harm decrease earnings human beings.

Answer 5

Read "The Fairtax Book" by John Linder and Neal Bortz, who advocate a national sales tax. I am for it since it would be easier to govern and it would be proportional. If American stop taxing corporate income 100 of the biggest 400 corporations outside of America would move their corporate headquarters to America, and 300 would build their next plant here.

Also a sales tax would be more dependable for the government and would tax the underground economy more than they are now.

Answer 6

Theoretically sales tax is a bad idea since even the poor people have to pay sales tax.

However, many countries have discovered that its easy to apply and difficult to avoid. Think of the number of 'clever' people that you know who cheat on their income taxes then think how many can cheat at the gas pump. See what I mean?

Tourists pay it. Illegal immigrants pay it. Senators and congressmen pay it.

Its also a lot more predictable and regular. No April 15th spike and no famine in October.

Bring it on.

Answer 7

Only if ALL OTHER TAXES ARE ELIMINATED and there is a stipulation that there can never be any other taxes (like state or local) imposed EVER. Other wise they'll keep adding on taxes, and increasing the multiple ones that we have as it is. I pay more money in taxes than I do for food! And I didn't even make 10k last year!!!

Answer 8

yes - more equal and fair for all - and makes the wealthy pay -
I would have brought home 32% more take home pay on $26k last year - what would that have done for my bottom line!?!?!?!?

Will bring home $11 trillion in overseas savings accounts - what will that do to help banking

and also make overseas sales go up when our items cost 20% less

yeah - bring it on!