Could America drop every single federal tax and just increase sale's taxes? Would that work with the economy?
2007-11-07 12:35:13 · 3 answers · asked by StephenieBaby 1 in Business & Finance ➔ Taxes ➔ United States
no.
Tax on gasoline goes to subsidize highway patrol, highway buildings, and other transportation stuff.
Tax on hotels goes towards chamber of commerce, department of travel and tourism, and etc
tax on property goes toward land develpment, community enrichment, and etc.
If you wanted to just pay one national tax, the people buying milk, would basically have to pay tax for property they don't own...
the single working mothers putting gas in their car would be relegated to paying the same tax for milk for their children, and again paying for property she doesn't own.
highways would be financed by children buying an apple at the school cafeteria...
doesn't work...
and besides, most of the taxes are small compared to the big one... income tax.
2007-11-07 12:39:24 · answer #1 · answered by PacificHR S 6 · 0⤊ 0⤋
Sales tax would have to be an additional 25-30% over what it is now just to cover federal income tax - plus more to cover other federal taxes like social security, medicare and gasoline. That would be a huge problem for low and middle income people. Would be really nice for the rich though - most of them would save a bundle!
2007-11-07 20:42:30 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
It is just that there are so many people not filling out there tax forms every April 15th that the federal government is sick of spending $20,000 to chase down and prosecute a $5,000.00 or $10,000 tax fraud.
A sales tax would eliminate a lot of wasted money pursuing tax cheats.
2007-11-07 20:43:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋