I'm glad to see that President Bush is siding in favor of the national retail sales tax. It is my hope that over the next few years we'll see the IRS abolished and not replaced. Sales tax is already being collected by 48 states - one only has to add about 16% to the amount they are collecting and it will cover the income being collected by the IRS at this time.
What's fair about this? I'm already paying 25% in federal taxes. It shifts the burden of collection from me (a self-employed businessman), for one thing. No more keeping track of how something is going to affect my tax picture.
For another thing it taxes the whole underground economy. If a drug dealer buys a new Hummer, he's going to pay 16% federal tax on it. If a corporation buys a new headquarters, it will pay 16% on it.
The only things not taxable will be food, medicine, and perhaps rent. That way this will not impact as much on poor people, who are currently subsidized by me and millions of others like me. If someone buys an old used car from a car lot, they'll pay 16% on the car. But not if they buy it from someone who doesn't normally sell cars.
Think of it - no more temptation to lie on your tax forms!
As Will Rogers said: "The Income Tax has made more Liars out of the American people
than golf has."
No filling in 1040 forms of any kind. No keeping track of your itemizable deductions. The amount of time this will free up will cause a surge in productivity such as we've never seen before in the US.
And there will be an incentive to save money aside.
It's a beautiful concept - support it in every way you can.
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