The tax rate would have to be around 30% (or more!) to raise similar revenue as the current graduated income tax. How would you come up with the $6,000 TAX payment on a new $20,000 car. Or worse, the $60,000 TAX payment on a new $200,000 home? Tax burdens like that would cripple the economy over night.
Why can't we have a universal sales tax nation wide and forget about income tax all together?
TFTP
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Why can't we have a universal sales tax nation wide and forget about income tax all together?
This would shift the tax burden from the rich to the poor.
Sales taxes by their very nature are regressive. They hurt the poor more than they hurt the rich.
Like it or not, the %26quot;fairest%26quot; form of taxation is a progressive income tax.
It's been proposed under the name %26quot;fair tax%26quot; which to my way of thinking is anything but fair.
Great deal for the rich. Lousy for middle income people. And also bad for the working poor who would lose the tax breaks they get now like EIC
You do realize that it would take an addon 30% or more?
Do a web search for Fair Tax, which would give people a prebate of tax for subsistance items (food, etc.). Their FAQ and calculator makes it look favorable. But if that was ever implemented, there could be initial sticker shock and purchase resistance, because there would be a 30% tax besides state tax. For example Chicago would end up with 40.25% sales tax.
When it is subtracted from your paycheck little by little, you don't pay attention to it. But if a $30,000 car suddenly adds $11,550 tax, that gets your attention
