A question

[fxstc]

If you are a supporter of a national sales tax in lueu of a federal income tax, what are the advantages, and or disadvantages?
In my mind there are several of each.
There are proponents of such a tax.
One advantage is, that EVERYONE would be contributing to the intake of revenue by the feds equally.
People that buy a product that is.
On the other hand, if we indeed incorporated such a system, what would be the governing factor on the rate of percentage.
I realize the rate would have to be set at current levels of spending, and THAT is one of the disadvantages.
So, what are your thoughts on such a system of tax collecting?
My thought is that, it would not work well.

 

[Gramps]

While it seems fair on the surface it does tend to levy taxes on people who can least afford to pay them while letting those who have more and an abundant source of income to skate. To really be fair such a tax would have to be levied on all purchased items to include real estate and on all services or we'd be right back to where we are today if begins to recognize exceptions. I, for one, would not be in favor of such a change.

Gramps

If you are a supporter of a national sales tax in lueu of a federal income tax, what are the advantages, and or disadvantages?
In my mind there are several of each.
There are proponents of such a tax.
One advantage is, that EVERYONE would be contributing to the intake of revenue by the feds equally.
People that buy a product that is.
On the other hand, if we indeed incorporated such a system, what would be the governing factor on the rate of percentage.
I realize the rate would have to be set at current levels of spending, and THAT is one of the disadvantages.
So, what are your thoughts on such a system of tax collecting?
My thought is that, it would not work well.

 

[fxstc]

While it seems fair on the surface it does tend to levy taxes on people who can least afford to pay them while letting those who have more and an abundant source of income to skate. To really be fair such a tax would have to be levied on all purchased items to include real estate and on all services or we'd be right back to where we are today if begins to recognize exceptions. I, for one, would not be in favor of such a change.

Gramps

That is certainly one of the DISADVANTAGES.
Another disadvantage (at least in my mind) would be that the tax rate may necessarally go up, as spending increased.
But there ARE advocates of such a system.

 

[888888]

If you had a system like this then all deductions would be out the window. No charity, no deductible expenses. Everything would have to be taxes including real estate, stocks, bonds, corporate spending on new equipment.
You really think any politician would back anything fair, because the middle class basically would be paying a sales tax on every penny they make and spend.

And you do understand that a sales tax would have to be around 10/15% to come up with the same amount of tax we now have. And big part of that tax collected would come from those who don't make enough right now to pay taxes. A guy making 30,000 who pays no tax right now would be paying some where between 3000 and 4500 in federal sales taxes.

 

[NightSwimmer]

This is a proposal that has been pushed by one crazy right-wing radio shock jock. He has a following on this issue that probably amounts to about 0.01% of the US population.

But, yeah... That allows you to honestly say that "There are proponents of such a tax."

There are also proponents of the idea that redheads are the offspring of aliens.