Friday, March 24, 2006

National Sales Tax. Part 2

Thanks for all the comments to my original post. I knew when I wrote the post that there are tons of fine details that need to be taken into consideration, but the bottom line in my opinion is that a national sales tax in replacement of our current income tax would be pretty awesome. Of course fine tuning would be required. PROs - Encourage savings. - Simple, reduce time required, improve producitivity (because people will do other things). - Reduce government costs, save taxpayer money! - Tax everyone, including tourism and non-citizens. Non-citizens (aka illegal immigrants) should pay taxes. I believe Tourists should as well, especially since they are using our resources while visiting. Important Considerations - Rebate system. There would should be some sort of "rebate" system, which would allow credit for certain income brackets, and other credits. - What would the "tax rate" be? - Is everything taxable? - Is everything taxable at the same rate? - Industries would virtually be eliminated...Block heads no more...IRS minimized...what type of actions would be done to help evolve these industries? Real lives will be affected. It seems like the one prevalent belief is that this would not happen anytime soon. It would really be well worth a national discussion on this. Maybe we (pf bloggers and readers) could make it happen? Now THAT would be something to blog. :)

2 comments:

Apollo said...

We have the state and county tax structure which is a framework for flat taxes.

For example if the state sales tax is 6%, how much more does to federal government need to tack on to cover our current federal spending? Would 3% more nation wide cover it? That would be 9% sales tax in some states.

I don't know if 3% is adequate or if it would be 8%. It would be interesting to know approximately what percent of sales tax nation wide would be needed to cover current federal spendig. Although that is another subject of discussion altogether.

freedumb said...

Hey Apollo, Actually I'm writing up something for Monday on that...it's pretty shocking! At least I was when I worked on some numbers...