Could a national sales tax replace a income tax?

Question

If we replace income tax with a national sales tax then evebody would have 2 pay and employers wouldent have to deal with all the costs of accountants for there income tax stuff plus nobody could cheet and hide from the goverment. what do u think?

Answer 1

Great idea.

There can be no exceptions. Everyone pays the same rate on everything they purchase.

Answer 2

One of the biggest tax cheats I know was an owner of a small store. He cheated every month on his sales tax returns.

There are many reasons while a national sales tax replacing the current income would not work but they are too numerous to mention here.

Answer 3

I think its a step in the right direction, but you could still "cheat" at it. Illegal imports and simply not reporting all your sales (for restaurants or sales of service) would certainly be more prevalent. Also, what would the sales tax need to be to bring it up to current income tax levels - 10%, 20%; more.

Still it sure seems better than what we have today.

Answer 4

Right. And the poor would pay a heck of a lot more (and kiss the earned income credit goodbye) and the rich would get a real good deal. Plus you don't think people would find a way to evade those taxes too?

Answer 5

a nationwide sales Tax is a sturdy thought. regardless of the undeniable fact that, the present concept is being promoted by ability of conservatives helps way too many loopholes which will effect in center type clientele carry the completed tax burden. examine the plan your self, and not somebody else's interpretation or precis of it. you will see that the damaging ... criminal or unlawful ... gets subsidies and the rich can in basic terms ward off paying the sales tax by ability of routing considerable purchases by company entities. that could desire to depart the middle type clientele paying 28% or extra tax on each and every thing they purchase. If yet another concept might come forth that could desire to do away with those loopholes and public provides you, and all and sundry could be paying tax uniformly, including companies, then i might help it.

Answer 6

I suppose it could. However I don't know what the sales tax rate would have to be. Obviously, it would have to be in addition to the 8.25% (the sales tax already collected by the state of California in come cities). It would not be a progressive tax...a person earning minimum wage and a person earning $200,000/year would have to pay the same percentage tax on purchases.

Answer 7

Sounds great to me. Oh, wait a minute, I'm a tax preparer, and that would put me out a job. BAD IDEA!!! lol.

Answer 8

That's a great idea...I'm sure there would be some hitches but I agree with you...NO MORE INCOME TAX!

Answer 9

I think it would create an enormous black market.