Would a federal sales tax be more equitable than the current federal income tax?
A flat Federal sales tax would be more equitable than the current income tax system.
A national sales tax would fall evenly on all citizens regardless of their income. No matter who purchased, for instance, a washing machine, they would have the same tax placed on the purchase price; there would be no level of differing taxes based on income. For this to be truly equitable there must be no exemptions for luxury goods, such as yachts, to shield the rich.
Posted by: FLindsayI agree, a Federal Sales Tax would be a Fair tax for all Americans.
While I can see why some people would be skeptical about a National Sales Tax, I believe if implemented properly it would be fair for all Americans. In my opinion Federal Sales Tax on food, clothing and other necessities should not be taxed, or should be taxed at a lower rate, there should also be a cap on clothing that could be taxed, Example... a fur coat should not be tax free because it is not a necessity. If implemented properly it would not be burdensome on the lower income Americans. Additionally if everyone has more money in their paycheck I believe people would spend more, therefore even more tax revenue would be generated. I do not know if a 25% FST is the way to go because that is fairly steep, but it could be tiered based on the dollar amount being spent on certain items, starting out at say 5-10% and going up as high as 30% based on the purchase. Luxury Items should be taxed at a higher rate.
Posted by: AnonymousA federal sales tax would be more equitable than the current federal income tax.
I believe a federal sales tax would be more equitable than the current federal income tax as long as it is not an additional tax. A federal sales tax would effect people equally throughout income levels because the more you purchase the more you pay, which means if you don't make a lot of money and don't purchase items you would pay less, likewise the more goods you buy the more tax you pay. I also agree that a flat federal sales tax would work fine as long as the current federal income tax is abolished.
Posted by: MycCra2iiI think a national sales tax would eliminate most, if not all, of the tax loopholes that currently exist.
All too often, higher income earners and business enterprises pay less tax than rank-and-file workers. A national sales tax, as a form of consumption tax, would tax every one equally across the board, and people who spend more would pay more taxes.
Posted by: etlaummoYes, it would allow fair contribution from and for all.
The argument is that the top 1% wealth holders account for 25% of spending in our economy. They use this to justify the trickle down theory. The challenge is two-fold. For one, tax codes are written to help the wealthy shelter their income from taxation. This has created a very complicated and burdensome tax code and has also increased costs associated with the administration and enforcement of it. The simple saving to the federal government from just collecting sales tax (the mechanism is already in place at the state level) is staggering. More importantly, those buying big ticket items will pay tax. Currently, if a $5 million home is bought or $250,000 car is acquired by the wealthy, they have corporations and shelters set up to minimize the taxable value of these assets. They personally do not own the Bentley, their corporation does. By playing this tax shell game, they legally avoid taxes. Federal sales tax means they are forced to pay for their spending: all of it. For those worried about the poor, here is an option, have them save their receipts and at the end of the year those that fall below 60% of the federal median income for the country can file to get it back. Keep in mind, you champions of the poor, the states that collect sales tax do not rebate anything to the income-challenged.
Posted by: AnonymousFederal Sales Tax Please
A federal sales tax would tax the people that spend the most and it would encourage people to save. You could make a flat 20% tax on normal goods and up to 40% on goods that are considered luxury or excessive. There would be no exceptions on any goods bought, this would include items leaving the country. This would also have another benefit, there would be no IRS and no complicated filings. People that say it would tax the poor unfairly are not telling the entire truth. They say that Rich people only need 20 - 40% of their pay to get by when poor people need 100%. This is wrong, most rich people "buy" Stock or bonds to invest their money. If everything is taxed then this would be taxed as well. The only exception I would make to the rule is that produce and organic and non GMO foods would be tax free, everything else would get taxed. Also those who work in the US illegally are not currently paying Federal Income Taxes
Posted by: AnonymousPeople couldn't opt out of paying taxes
Those who have undocumented income would be required to pay taxes on their purchases, which would prevent them from avoiding federal taxes.
Posted by: AnonymousPay what you want.
The thing about a sales tax is, that you would only get taxed for what you purchased. If you purchase more items then you're going to pay more tax. If you purchase less items then you're going to pay less tax. So what if the price of sales change? If it's a flat percentage of the sale, then that can be calculated at check out. I've seen arguments that sales tax would hurt civil liberties; no more than an income tax does. Without income tax and with sales tax, you get to keep more of your paycheck. Sure, you do your income tax return and you might get a lot of that money back, but you have to wait till tax time and hope you filed correctly. With a sales tax there's a lot less overhead on the individual and the collection agency; a lot less paperwork for one. Also, when you consider that the federal income tax was put in place mostly to pay for wars and was considered unconstitutional by the Supreme Court in the mid 1890s; in my opinion it should still be considered as such; it would seem that a sales tax is far more agreeable. I'm not arguing what should or should not be exempt or what the percentage of tax for what item. That's already been done and can be discussed when/if a sales tax comes about at all.
Posted by: AnonymousThink about sustainable results...
Every model I have seen for a national sales tax includes eliminating income tax which is progressive and flies in the face of the American dream. Income tax makes it less desirable to get that promotion or better yourself because you will just need to pay more taxes. Taxing consumption is not only better for the environment, but better for each and every one of us. Every model I have seen for this includes relief for basic items for the poor so they are limited on their burden based on percentages. No taxation system is completely fair, but if compromises need to be made, they should be made in favor of the people using the services rather than people who have worked hard to find a better life...the American dream! This goes back to what my grandparents taught me...work hard every day and you will be rewarded. Not only is a national sales tax better for us as individuals but also the environment and future generations that rely on our decisions!
Posted by: steve.kiernan8A federal sales tax would be very equitable in any country based on capitalism.
Capitalism is driven by consumerism. The "American" way of life is based on buying things. We are told to work hard so we can buy the so-called finer things in life. In this day in age, Americans, in general, are driven by greed and over consumption, to always have the newest and best things in life. I don't think a federal sales tax could lose in this country unless it is brought into action while the federal income tax is still active. You have to do away with the income tax in order for the federal sales tax to be beneficial. You can't raise the prices of everything while continuing to take money out of paychecks, it just won't work.
Posted by: BrianDjNot Unfair
People think that it would target the lower classes unfairly. Take Joe Taxpayer - he makes $32K per year and lives in a mobile home. He shops for clothes at WalMart, drives an 11-year-old vehicle and when he vacations in Vegas every other year, he stays with relatives. Now Look at Mr Moneybags - he makes $300K per year and lives in a 4,200 sqft house. He shops for clothes at Gucci and Versace. He buys a new car every two years and when he vacations in Vegas twice a year, he stays at the Bellagio. Now who is going to pay more in taxes? The simple fact is that those who make more, tend to spend more.
Posted by: AnonymousA federal sales tax would be more fair in that everyone would participate.
Presently, 47 percent of Americans do not pay any income tax, at all. That kind of percentage of citizens not contributing is not healthy for our society. It can be argued that if everyone had to pay a federal sales tax, then everyone would be more involved in making sure the federal government does not waste the tax payers' money.
Posted by: ddeathnoteSupplemental Federal Sales Tax Presents a Sensible Alternative
A federal sales tax to supplement a federal income tax would serve to tax alternative economic systems such as the the cash economy by which many people live in this country. While it might be impractical to eliminate such an economy or to try to enforce tax collection, arguably everyone who is paid in cash or "under-the-table" spends the cash received. Imposing a federal income tax would serve to create a new revenue stream from this sizable alternative economy.
Posted by: BGR8Yes.
I lost my home but hey, no problem, I can get public assistance for that. I lost my job and couldn't provide my family with food but wait, no worries, I can get public assistance for that. I need a cell phone for emergencies. I need clothes for my family. I need to help with transportation. Public assistance, public assistance, public assistance!
I honestly believe that a federal sales tax would be a horrible mistake, but all the naysayers opposing this proposition are doing so for all the wrong reasons, which is why I vote Yes because I can't associate myself with you. Do you honestly believe a federal sales tax is aimed at the poor? The poor, the real poor, have a multitude of options for public assistance. Poor people tend to spend less, because they have less money to spend. I mean come on! There are rich people out there driving cars that cost more than an entire housing development will spend on groceries over a lifetime. There are no common essential needs between the rich.
Props to Comment #4 on the NO response.Posted by: dundermifflinWe need both...
You can't do away with the income tax but it does need to be simplified to some degree and with a progressive scale. We do need a small sales tax, be it 1 or 2% just so everybody contributes. Over 50% of the individuals in the US contribute nothing to the system and pay NO income taxes. Those that work on a cash basis, illegals, lifetime welfare recipients, all contribute nothing to the system. A sales tax would at least raise some revenue with little overhead. Obviously, direct purchase of food and some clothing, and possibly housing would be exempt. We just need more people contributing to the system...or should I say all people contributing something to the system
Posted by: AnonymousAbsolutely
Provide an incentive for saving and investing while taxing consumption. Also decrease the tremendous cost of tax compliance for millions of Americans as well as corporations every year. I'm an accountant and realize that thousands of CPAs would have to find new work if tax were to be simplified to this point. In reality though, they are smart individuals who can help a business grow and should not be troubled for finding jobs. The overall increase in savings & investing leads to smart spending which drives the up tax revenues and produces a more active economy. Reduce government limitations and entitlements but increase education and public communication so that we have a voting population who is knowledgeable and driven on the issues. Our bi-partisan system has failed as both sides are deceptive.
Posted by: jasinkYES
I see a lot of people saying it would hurt the poor but it's simple math. If a low income person spends 100% of their check, say $600 and are taxed 10% that's $660 dollars. If a rich person spends 10% of their check, $600 dollars and are taxed 10% that's $660 dollars. The rich just have 90% they can't spend if they don't want to be taxed. The tax remains the same dollar for dollar. It doesn't affect the poor as much as the rich. More spent money, more taxes paid. Less spent money, less taxes paid. The poor WOULD NOT have more of a burden.
There are a lot of "rich" people out there that blow 1000's a day on crap only to turn around and claim it back in deductions. With a sales tax these 1000's in spent money would turn into 100's in tax income.
For the middle and lower class it would mean keeping more of your check to start, let you save money back, and move up the chain. The only safe gaurds that would need to be put in place is "passing the buck" which a lot of companies currently do. Raise the price of items to make up for the tax they have to pay. The IRS wouldn't be able to be closed, it would just get smaller and keep an eye on big businesses to make sure they aren't trying to take advantage of the consumer by trying to pass on the tax as a "cost of living increase".Posted by: kinyajuuYes
I live in Texas where there is no state income tax. However, we have one the highest sales tax rates in the nation. Our sales tax works as our income tax and everyone is subject to except when purchasing food or services such as plumbing. I feel the same will work for the rest of the country!!! This will not hurt the poor, it will ensure that wether you are buying a ford fiesta or a Maserati you will be paying your "fair" share!!!
Posted by: AnonymousEverybody pays a little. ijustaretiredguy
1% tax on all goods and services, exempting determined basic needs. This tax would added to current irs and state sales taxes. Costs on everything seems to always go up, so how do we pay for them? We either pay a little more or get a little less, just ,for example, coffee. Fact of life is you can't get what you want and need for last years price. Research the expected tax revenue and adjust federal spending to eliminate or at least substantially lower our cost over-runs. I know this seems a little simple, but I favor the kiss principle. Plus it seems this could happen fairly quickly ,if the congress would consider the best interests of the majority of the people in the us instead of their own self interests. (getting reelected ,getting wealthy, and making their party happy with them).
Posted by: AnonymousA truly fair tax.
A national sales tax would be based completely on consumption. If you don't spend it, you don't pay. The rich would spend more and therefore pay more. The poor would spend less and therefore pay less. The most important part is that you would only pay a tax if you chose to spend. It would encourage savings and investment that would lead to amazing economic growth. This would lead to consumption that leads to more tax revenue. It is a win for the poor, the rich and everyone in between.
Posted by: AnonymousWho are the poor?
This tax would also hit those purchashing items with illegal untaxed income such as gambling, drugs, working under the table, etc. The poor already pay a federal sales tax on gas, liquor, and tobacco products. Who uses more of those products, the rich or the poor? Are we defining POOR as anyone not having a cell phone? 47% of Americans pay no federal income tax. Guess the rest of us are rich and should support this overwhelming minority.
Posted by: AnonymousBy having this sales tax citizens could control the revenue stream to the Federal Government.
The Federal Government spending is out of control. If the Federal sales tax rate was voted on by the citizens instead of by the politicians then the power of this country would be restored to the people. The money spent in the so called shadow market, including legalized drugs and all other retail sales would create enough tax revenue to run the Federal Government.
Posted by: AnonymousIt could be designed not to hurt the poor, and encourage better behavior for everyone.
Most people against this idea feel it would hurt the poor and benefit the rich. If you exempt the basic items that the poor consume, then it is possible for the poor not to pay any of the tax. For example, you could exempt milk, eggs, bread, fruits and vegetables, etc., to encourage people to eat healthy and not paying the tax for the incentive. Any behavior that we want to encourage our society to engage in could be exempt from the tax, thus giving the incentive to engage in that behavior, and the opposite would also be true. Any behavior that we want to discourage could be taxed, even at a higher rate, for example illegal drugs to discourage the behavior or to generate revenue to provide medical services to those that need it, instead of putting them in jail, which would be a cost savings.
Posted by: AnonymousEveryone would have to pay their fair share.
Everyone needs clothing, food etc., and everyone would have to pay the same taxes on these things. Tax Exemption Certificates should be handed out to the poor for food, basic clothing, etc., but otherwise, if you cannot afford it, people do not need to buy it. It would give individuals more control of their spending and the government could scale back on the IRS department, employees expenses etc., saving taxpayers money.
Also, some states do not charge a "state income tax"; they base their revenue solely on sales taxes. If states can do it then why not the Federal Government?Posted by: AnonymousIt was originally voluntary to pay income taxes.
First of all federal tax used to be voluntary and has gotten way out of hand in the way they handle the money. Eliminating income tax and using sales tax at a cap for federal will put them in their place in having no choice but to spend it wisely. I think states would be better off simply paying !0 percent of their gross while we pay State tax period. Federal doesn't really need to exist for us to thrive. They are there only to defend our country and not play with our money. They have gotten greedy and we have allowed it.
Posted by: AnonymousFederal Sales Tax Please
A federal sales tax would tax the people that spend the most and it would encourage people to save. You could make a flat 20% tax on normal goods and upto 40% on goods that are considered luxury or excessive. There would be no exceptions on any goods bought, this would include items leaving the country. This would also have another benefit, there would be no IRS and no complicated filings. People that say it would tax the poor unfairly are not telling the entire truth. They say that Rich people only need 20 - 40% of their pay to get by when poor people need 100%. This is wrong, most rich people "buy" Stock or bonds to invest their money. If everything is taxed then this would be taxed as well. The only exception I would make to the rule is that produce and organic and non GMO foods would be tax free, everything else would get taxed.
Posted by: AnonymousMore efficient in every way
No tax returns, business persons already collect sales tax, and so there is very little more to be done. Enforcement is reduced gigantically because only business collect the tax instead of having to police every single person. It is easy for people to know what they are required to pay and can budget right on the spot and most importantly it makes for more freedom.
Posted by: AnonymousA little goes a long way
I have no idea how many transactions there are on a daily basis in the United States, but assuming a population of nearly 350 million people, and most likely 1 or 2 transactions per day per person on average, it only makes sense to have a federal sales tax. Agreed, not on all things, IE Food etc... but even a fraction of a penny on almost every transaction would drastically reduce this nations debt, and would go virtually un-noticed by the working class American. There are those that argue that a Federal Tax is imposing on our civil liberties, and maybe that's true, but before this crisis gets out of hand we need a solution. We can worry about fixing the corruption once we have fixed this more pressing concern. I seem to recall someone once saying "ask not what your country can do for you..." Let's do this for ourselves, and be done with it.
Posted by: AnonymousMore equal
Those with more income generally buy more any way, and generally buy more expensive items.
Food, medical, housing (to an extent), clothing (to an extent), should not be taxed. Those are the necessities of life.
If a person of greater wealth wants to buy "bling", they pay more in taxes. Those who are on a lower budge pay less.
No income tax, but tax on what is purchased.Posted by: AnonymousA 1% national sales tax -eliminate any tax on first $25,000!
A 1% national sales tax will simplify income tax by eliminating any tax on the first $25,000 in income. No earned income credits, no filing whatsoever. Gain revenue from everyone. All of those self employed who avoid filing. Set the rate at 1% - or the amount needed to be raised. I would estimate a 1% national sales would raise more revenue.
Posted by: AnonymousYes, sure would
Yes for it would put an end to loopholes and everyone would be supporting our nation. Instead of just a few, would save government money by cutting down on materials used, employees, to run the way it is now and people would have their own money that they earned. Won't go into all the details but it would be better and millions of dollars saved.
Posted by: AnonymousEveryone pays, poorer people pay less because they buy less.
How is that not fair? It's simple, simple is good. Our state does not tax groceries, I can't image that the fed would either. So, I highly doubt it is going to cause a situation where people cannot afford their groceries. If income taxes could be done away with along with all there deductions and rate variables it would be simple and fair. The rich who buy all kinds of expensive things would pay more tax because of it. The poorer people who would not be buying those things or purchase simpler/cheaper versions of those things would pay less. You can't tell me either the rich would stop buying things because of the taxes, what is the point of having the money if you don't spend any of it. Are they going to hold out purchasing anything in the hopes that they repeal the tax? I doubt it.
Posted by: AnonymousFederal Sales Tax Please
A federal sales tax would tax the people that spend the most and it would encourage people to save. You could make a flat 20% tax on normal goods and upto 40% on goods that are considered luxury or excessive. There would be no exceptions on any goods bought, this would include items leaving the country. This would also have another benefit, there would be no IRS and no complicated filings. People that say it would tax the poor unfairly are not telling the entire truth. They say that Rich people only need 20 - 40% of their pay to get by when poor people need 100%. This is wrong, most rich people "buy" Stock or bonds to invest their money. If everything is taxed then this would be taxed as well. The only exception I would make to the rule is that produce and organic and non GMO foods would be tax free, everything else would get taxed.
Posted by: AnonymousThis way tourists, unemployed, illegals, people on state aid and everyone else would contribute. Cash businesses would now pay taxes (nail salons, bars, restaurants, etc..)
Not to mention that we would not need the IRS any longer which would save a ton. We would just have to think of an option for homes, cars, boats, etc...
Seems to have bailed Russia out and we can't keep doing what we are doing and expecting it to get any better right? Simply crazy to me that the tax system we have now gets mishandled the way that it does. This could also fund no cost hospitals the way Brazil has. You can have insurance and go to the state of the art hospitals or walk into a free county hospital.Posted by: AnonymousAbsolutely YES,
This is a great idea and we should push for it. We would then be able to tax the 60 billion dollar a year drug trade. That drug dealer that buys a luxury boat or car would then be taxed. This would generate a big stimulus to our economy. We would have less need for the tax attorneys, the huge IRS department (whose budget this year is 13.3 billion dollars) and CPA's to do these tax returns.
This would be a win - win for all of us, rich or poor.Posted by: robert.hebbYes
Many people feel that a change from the current income tax rather than a flat federal sales tax would provide no difference or substance but they are wrong. First, the current system is broken. We place a higher tax on those who make more, tax the middle class with a little lower rates, and then tax the poor nothing at all. For those, "poor" who actually do make an income we force them to pay and then hope they can survive. The problem is we as a country do not reward saving and investment. A federal sales tax would tax those people more on what they bought and how much. It is not an attack on consumerism but rather to ensure that EVERYONE is taxed accordingly. I think American's forget about under the table income and fraud. Thieves, drug dealers, illegals, everyone would, in some way, be contributing to federal taxes not just the working Americans. It would result in the government receiving their taxes also, leaving accountability to the mean corporations. Personal tax income fillings would become obsolete and only businesses would be responsible for maintaining tax records. For anyone who thinks that taxing the workers of American society and not everyone equal is absurd. Let me bring home 50,000 a year. What I spend on taxes will in no way be as much as someone making 250,000 who buys a nice car, boat, jewelry ect... Let the people determine how they wish to spend their money and how much as a result they will be taxed. Needless to say the government only collected taxes on around 60% of American's and I think that number is high. Meanwhile, under a federal sales tax 100% of people who buy stuff in this country will be taxed.
Posted by: AnonymousThe great equalizer
So as per my W2 and my tax return I am left paying 15.3% total in federal tax. So if every person and business pays exactly the same then it's a simple done deal. And I do mean everyone, every time. Disney just bought Lucas for four billion plus. Place the same 15% sales tax on that. Bam! It would absolutely fix everything.
Posted by: AnonymousFlat Federal Sales tax on New Items Only
A 25% Federal Sales Tax (FST) on new items only would benefit the American people more than a regressive Federal Income Tax. The only exclusion would be for food items that only have one ingredient (ex. meat milk, honey grains, eggs, fruit, and vegetables).
A FST would place a majority of the tax on Upper income families who have money to spend and very little on Poor or lower income families. Lowest income families pay minimal or no taxes currently. There are already state programs in place to assist those who are most needing. I grew up poor and everything we had was second hand. If you want new stuff get a job that pays more…
A FST would allow people to no longer be penalized for working. As it is now if you work more you pay more in taxes. So by having a FST instead of Federal Income Tax more Americans would want to work and would not be discouraged with working 20% of the time for free for the government.
A FST would equalize trade imbalances with other countries and help local businesses to be competitive with the international market again. This would reduce the market some from foreign companies and provide more jobs in the USA..
A FST would create a more independent and stabilized market in America. America would no longer be dependent on foreign countries to provide the USA with its necessities because American made products would be taxed the same as foreign made products thus being more competitive…
A FST would place a tax on all Consumers in our free market. Including Tourist, Immigrants (legal or not), Criminals(who typically deal in cash), as well as American citizens. Why should only American Citizens pay for the freedoms of all those who are living in America enjoying said freedom.
A FST would eliminate big businesses from lobbying congress for Tax breaks and exclusions. Currently some businesses are taxed. A FST would have all business being taxed foreign and domestic.
A FST would Simplify the IRS and Reduce/eliminate the number of IRS workers thus shrink the Federal government. Many states already have a State sales tax, so the infrastructure to implement it is already in place in most of America. States would be responsible for collecting from point of sales.
A FST on only NEW items would tax only those who “needed” to have the newest items. Used everything would be federal tax free. So lower Income families that shop at good will and buy used cars would not be paying any extra tax. But those who must have new would..
A 25% FST would create a surplus tax that could be used to eliminate Federal debt, providing a sustainable future for generations to come.
So in conclusion a FST would secure Americas’ future.Posted by: AnonymousA flat federal tax would increase government revenue while still being fair to the poorest people.
There is so much in the media about tax havens and tax evasion. It's so easy at this time to lie or cheat on your taxes but if we had a FST there would be no way to cheat and if implemented properly a sales tax would not be applied to essentials such as food, clothing, school supplies and such. People below poverty could even get a rebate depending on income. Since there would be no tax on essentials which is basically all lower income people have money to buy then they would end up with more money in their pockets to buy the essentials. You would be able to get rid of the IRS and the countless expensive lawsuits it takes to enforce the current income tax system. Since wealthy people have more money and spend more they would still end up paying the majority of the tax.
This is the fair and affordable way to go!Posted by: AnonymousA federal sales tax would be more equitable than the current federal income tax, because it would prevent class warfare.
When income is taxed, it always ends up with the rich people being taxed at a much higher rate than poorer people. The poor people then start to feel entitled to other people's wealth. If everyone is taxed based upon a fixed sales tax rate, then no one group of people can band together to take other people's money.
Posted by: 5h4yGustTired of the rich not paying fair share
With the current tax bills and medical insurance going sky high since Obamacare, the only way to equally share the pain is through a Federal Sales Tax. Not on staple foods, clothing, except Luxury items. Hit everyone the same way. Lower incomes who buy more food and basic clothing will not be hit as hard as the ones buying Vineyards and G6's. How much odes the Goverment pay the IRS in salaries to harass middle income Americans? Why not just turn the IRS into tha sales tax collecting agency and get rid of a tax program that has turned the 1040 into a lesson in Astro-Physics and Nuclear Reactor Engineering?
Posted by: AnonymousTax What You Consume
With the removal of the income tax and potentially other taxes ; a uniform sales tax placed on ALL purchases, including purchases for manufactured goods would be in the final product would be the same no matter who purchases it. Those with grater incomes would purchase more and hence pay more taxes. The end idea would be to tax based on use. If a person doesn't purchase a high dollar SUV they would not pay that expense. Perhaps they purchase a small economy car, they sales tax they pay on that would be equal to what they consume/purchase.
In contrast with income tax, there are rates applied differently at different levels of income. There are loop holes and deposits of income to countries outside the US to prevent being taxed. There are thousands of employees of a non-governmental bureaucracy that do nothing but add to the cost of taxation and have been know to apply tax laws differently. The fact that there are even many many tax laws should show how bloated this agency is.
In short a Uniform Sales Tax would equally be applied to everyone with a "tax what you consume" mentality
SCPosted by: ShainCIt provides the government with more people paying taxes towards our government.
Instead of paying an income tax, people would only be paying a tax for items they bought. This allows the government to receive "tax" money from EVERY person buying items in the United States. Now take that in to consideration for a moment. If every person buying items paid a sales tax, that would include all of the tourists that enter the country, people who avoid taxes in the first place, and last but not least, illegal aliens.
Posted by: AnonymousThink about illegal aliens and tourists
To swap income tax for sales tax makes more sense. This could also help fix our illegal alien problem. I only have a problem with illegal aliens because they use government programs and our education system but they don't pay taxes. I think the House should swap immigration reform for a flat federal sales tax because anytime something is sold, tax will be paid no matter who you are. So in essence everyone is paying taxes, not just the 1% or just the 99%, ALL 100% will pay according to what they use. I would much rather have all 1625 of my paycheck every 2 weeks and determine how I will spend it than the 1087 I get because of income taxes and medicare taxes and social security taxes which I will never see. At least with a flat sales tax I am not being promised something there is no way my generation will ever see.
Posted by: AnonymousEveryone would pay their fair share.
There would be no loopholes for the very greedy rich ones (not that all rich people are greedy, but some are, and cheat) and every illegal alien, every criminal, everyone fraudulently receiving public aid would pay. Meanwhile, those people who are actually poor would not pay more than their share because sales tax never applies to necessities like groceries.
Posted by: Anonymous
I disagree-reduce taxes don't increase them.
Opening the door to federal sales tax without identifing how it will be managed, where the money will go and who can raise or lower the tax is not the way to do business. We already pay more than our fair share of taxes based on income, adding sales taxes will just increase financial burden, dramatically increase the cost of goods sold and reduce overall money flow. Ultimately higher taxes reduce sales and could cause a run away affect and would further burden this country with loss of sales. Ultimately, spending would stop except for essentials. Now if we completely removed income tax and reduce the sales tax burden to around 5% and insured states didn't tax more than 5%, 10% on the cost of goods is reasonable. In CA I already pay nearly 10% sales tax on goods, 25% would push most Californians off of purchasing goods in t he medium to low income households.
Posted by: AnonymousA sales tax would not be more equitable than the federal income tax because it would hurt the poor the most.
There are basic needs that every person, rich or poor, must have. To tax heavily the basic needs and services that everyone must purchase is to place an undue burden on the poor. Certain basic things would become completely unaffordable for those who didn't have much money. The rich and poor would basically be paying the same taxes, but it would cripple the poor while not affecting the richest. This is not a humane concept.
Posted by: OnfBIeakNo, a national sales tax would not be equitable.
A national sales tax would be inequitable to the poor who spend more of their income on purchases than the wealthy. The purpose of our tax system is to tax the wealthy more than the poor. They benefit more from our society than the poor and should pay more. The problem with the current system is that it has become so complicated with the constant changes. The progressive nature of the tax system would be benefited by simplifying it, but not creating a national sales tax.
Posted by: R43Shepsales tax and federal tax too
Give the government a chance and they will make it worse. The less they do the slower they over tax us and spend more money that the US does not have. If they CHANGE from an income tax to a sales tax it might work if certain exceptions like those in NY State are used. Food and Medical should not be taxed.
Posted by: AnonymousFederal sales tax would not be more equitable at all, because it penalizes consumption and taxes people unequally.
Federal sales tax sounds like a good idea at first, but there are many problems with it. Among these problems would be that it discourages consumption, which in the long run, hurts our economy. It is also unfair because it taxes the poor at a much higher rate than anyone else. If a poor person has to spend 100% of their pay check to get by, then they get taxed on 100% of their pay check. Whereas a rich person might only spend 20% or 30% of it, leaving them largely untaxed.
Posted by: M0r3FireA federal sales tax will result in lower-income people paying a greater percentage of their income in taxes than higher-income people.
A sales tax appears to be equal across the board. It is not, however, due to the fact that there is a certain amount of things that are necessities that everybody must purchase. If the income tax is abolished, lower income people will pay a greater percentage of their income in tax than higher income people, simply because lower income people spend a greater percentage of their income than higher income people do.
Posted by: A SheltonDemand drives our economy.
No matter how gleefully supporters argue that a federal sales tax will encourage people to save, they are merely obfuscating the fact that this saving comes at the expense of spending that creates demand, and it is always demand that creates economic growth. Nothing supply-siders say about giving businesses money to "create jobs" addresses the basic economic fact that it is demand that creates jobs.
People do not create businesses in order to add jobs to the economy, they crate businesses to make money, and the only way they can make money in a capitalist system is by meeting demand. No demand, no business. No demand, no new jobs.
Therefore any, and all, arguments supporting supply-side stimulus are merely ideological, and are not accurate.Posted by: AnonymousA federal sales tax would be just as regressive as the state's sales taxes.
I live in a state where there is no income tax, but we pay a 9.25% sales tax on everything we buy. The problem with sales tax is that the people who can least afford to pay it have to carry the burden of it. Those who are able to pay the extra, might not seem bothered by it. I can understand the temptation to use a sales tax, especially on unessential items. But, when you buy $100 dollars worth of groceries, then have to pay an extra $9.25 on top of that, it will bust your budget if you have a limited income. Now, suddenly, you are out of the $10 you needed to buy diapers for the kids. This is the kind of regressiveness that a sales tax can cause.
Posted by: C3II0FriendI simply can not agree that a federal sales tax would be more effective or equitable than income tax because sales fluctuate too unpredictably and changing tax models in this way would undermine the established calculation of key sociological metrics.
People must pay their bills and put food on the table, so they must earn an income. The purchase of a particular product, or any beyond the necessities, is contingent on numerous individual factors, such as financial stability, disposable income, and current obligations. Additionally, the calculation of Gross Domestic Product involves the analysis of governmental income based upon verifiable and stable sources of tax revenue, whereas the proposed system would shift government income to a system that is unpredictable at best and mathematically chaotic at worst. Imagine experiencing stock market declines on the governmental level such that nations begin to rise and fall according to market trends. That would be the result of this move. Furthermore, the combination of income and sales taxes would introduce the same element of unpredictability while also straining the open market by causing immediate false inflation. The only viable application I can think of for this idea is the introduction of federal sales taxes on cheap, high-traffic products such as alcohol and cigarettes, treated as windfall profits for government, and used to soften budget deficits in an intentionally unanticipated manner such that fiscal year outcomes become perpetually better than expected.
Posted by: MarIAstaA sales tax replacing an income tax would simply encourage the wealthy to save their money, thus strangling the economy.
If income taxes were eliminated and replaced with sales taxes, the hardest hit would be the lower class, who can't afford to save money and have to spend everything they have simply to keep on going from day to day. The wealthy, by contrast, would save all their money, investing it in ways that wouldn't be taxable, thus maintaining a 'rich get richer' feedback loop that would ultimately destroy the economy.
Posted by: T0mFlamesA federal sales tax would only achieve the same thing that the current income tax does.
While it sounds right on the outside, a tax such as this is really no better or different than an income tax. The income tax is figured on a progressive scale that has people who earn more paying a higher percentage than those earning less. Since richer people have more money, they obviously buy more stuff, and would, once again, pay more in taxes. Therefore, a tax like this would achieve nothing and look very underhanded and bad on our government's part.
Posted by: BryanPetersonI think a federal sales tax would be unfair because low income people would be taxed on basic needs.
In theory, a federal income tax might seem fair, because people with more money would pay more taxes if they spend more money. However, people have many basic needs, and there are a lot of people who can't afford to pay more spend more than they already are. People with a lot of money would have a choice of not paying more tax by not buying unnecessary items, while low income people who only spend on basic needs would not have the choice.
Posted by: N Schroeder 60I think a federal sales tax would not be more equitable than income tax because people in lower socio-economic groups would end up paying more.
Everyone (rich and poor) needs to buy things like food, clothes, utilities and these expenses often take up the majority of poorer peoples income. If they are paying the same tax levels on these as those who earn a lot more money, their percentage of tax paid is going to be much higher than those on higher incomes which is unfair. Income taxes also have their problems but ideally under this system those in poverty should pay less tax and is thus a more equitable system.
Posted by: StoopAllenI disagree that a federal sales tax is a better solution than current federal income tax.
Federal sales tax would burden everyone equally regardless of how well they can afford to pay tax. It would immediately raise the prices of all products, making purchasing power of an average consumer deteriorate. The true solution of any government is not to draw middle and lower class by further taxes, but to spur economical growth so that the existing tax system can contribute more to government's coffins.
Posted by: BurM4rk