Should the US repeal the income tax laws and go to a national sales tax?

Question

That would pull in taxes from all workers. Under the table workers, drug dealers, and anyone making money by other illegal methods. And everyone would pay per their income (how much they buy).

Answer 1

I love that idea. If the rich want to spend their money, they will be taxed. And if I don't want to be taxed so much, I can spend less and invest the difference. Great idea and it seems fair (so no way it will ever happen).

Answer 2

I'm not totally convinced, but I'm leaning toward the idea that a national sales tax would be better. The main objection is that it is regressive in nature. A lot of that objection could be overcome by setting the tax a little higher, than giving everyone over the age of 17 a refund similar to the earned income tax credit. Joe Sixpack would pay his sales tax all year, then get back $ 5000 (or more) as a rebate. Bill Gates would get the same $ 5000 which would strike some as totally wrong.
The reason, however, is that this approach would eliminate the need to prove low-income status. By eliminating the need for any kind of administrative cost other than auditing Retailers or other resellers who buy tax-free a ton of administrative expense would be saved.

Bill Gates and Warren Buffett, of course, spend a lot smaller percent of their income, so they get a tax break from the sales tax approach. However, since they do not spend all their money, they invest which grows the economy, so us spendthrifts will have more to spend and on which to pay the sales tax.

The present tax code is totally unmanageable. Most people can't prepare their own tax return and have to pay some guy like me to do it for them. With the sales tax, only retailers and possibly a few others would have to file returns.

Answer 3

Try " Fairtax,org"

Repeal Income tax and start an inclusive sales tax.
We the people pay Individual income tax and also cover all Corp tax. Where do you think the corps get the money to pay their taxes from sales profits which come from the consumer, US.

Answer 4

Do you seriously believe that drug dealers are going to report income? Dream on! Guys like Ken Ley isn't going to report income either. They will find ways to hide it. They do now. Look up the difference between regressive taxation and progressive taxation. Once you understand the difference you'll see why a national income tax is not a good idea.

Answer 5

The income tax laws should be repealed and replaced with nothing. Instead, we should cut out 90% of the federal government's budget and 90% of its activities (most of which are unconstitutional anyway). That said, I DO believe there should be a national sales tax on any and all items unecessary to our basic survival [jewelry, luxury auotmobiles, private planes, dining in five-start elegant restaurants, above-average homes and real estate, top-of-the-line clothing, etc., etc.]. Eliminating all corporate welfare, the billions of dollars our government spends on waste and fraud, and the trillions of dollars it squanders on 'war' must also become a priority in this country.
Let those who can afford luxury goods pay steep sales taxes. Let those of us who choose to live (or are forced to live) meagerly and frugally pay no income tax at all. -RKO- 12/11/07

Answer 6

"Under the table workers, drug dealers, and anyone making money by other illegal methods."

These groups would still have more money to make purchases with, the National Tax would still be UNFAIR to those at the bottom tier of society.

Answer 7

NO! The government should repeal the income tax and NOT REPLACE IT WITH ANYTHING!

Instead, we should eliminate all the money we pay as Corporate Welfare in the form of government subsidies, eliminate the BILLIONS AND BILLIONS we send in aid to foreign countries (mostly in the form of military aid), and eliminate the HUNDREDS OF BILLIONS we're spending on the Iraq war.

Ron Paul is the only candidate who wants to do this stuff.

Answer 8

So, basically, a $1000 dollar computer would become $1400? That sounds like a good way to bankrupt retailers AND the government at the same time.

Answer 9

We should repeal ALL taxes, and go to a 40% sales tax. Then everyone would see how much the government costs, and they would finally think about cutting its size.

Answer 10

Absolutely! But knowing the jack***es in Congress, they'll probably enact the sales tax without repealing ANYTHING.