Tax Reform
When the American people think of taxes, the acronym that immediatelycomes to mind is IRS. Associated with these three letters are the auditsand spools of red tape that Americans travel through each year to earn atemporary hiatus from government intervention into their lives. Thepermanent escape from this burden of record keeping and paper pushing isjust one of the benefits reaped by replacing the current federal income taxsystem with a national sales tax. Simplification of the federalbureaucracy through a national sales tax would eliminate the need to evenhave an agency such as the Internal Revenue Service. The burden ofindividuals being forced to keep financial records for seven years and thenightmare of filing annual tax returns under a complicated system of rulesfew can decipher would no longer exist. In order for our country toinstitute a just and ethical means of taxation, establish a secure methodfor appropriating government funds, and to honestly save the taxpayermoney; the United States should initiate tax reform by eliminating federalincome tax and create an across the board federal sales tax.The government's reliance on the current income tax system creates a
Sales tax collections would also include the illegalimmigrants that swell our nations ranks along with those who get paidunderneath the table such as criminals, drug dealers, and other heinousactivities. Those businesses and individuals that make alarge incomes, are forced to invest their hard earned money in complicatedtax avoidance schemes or be required to pay a larger percentage than thosewho comprise the lower income brackets. The federal sales tax would force those of lowincome to pay a higher percent of taxes then they normally would. For thosestates that have never implemented sales tax, the federal government wouldeither institute an operation to collect the tax or instruct the state todo so (Mikesell). In the current income tax system, the ones who are taxed the heaviestrates are households and business who earn the highest percentage ofincome. Both purchases are taxed at thesame rate. If you spendmoney you get taxed and the more you spend the more tax revenue thegovernment acquires. Thiskind of activity could lower the support of US made goods or US companiesmay sell via the Internet from out of country factories and warehouses(Burton and Mastromarco). It seems reasonable to assume that a nationalsales tax would be quite a deterrent to these activities. The more the consumerpays for an item than the more the consumer pays in taxes. A national sales tax would create a morecost conscious society that would look for the better deal. Becauseof this, the implementation of a national sales tax would be a gradualchange over a period of time eventually replacing the old income taxsystem. This situation causes an economic loss by creatingextra work for the government and lost tax revenue. By the government spending more ofthe funds that the taxpayers put into the system along with the standardgovernment spending, the national deficit will only increase (Crest). The basics of a federal, or national, sales tax are that theconsumer is the one who is taxed not the income producer.
Common topics in this essay:
Burton Mastromarco,
Revenue Service,
Congress President,
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IRS Associated,
Richard Lugar,
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national sales,
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,
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federal government,
income tax,
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America Dream,
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lower income brackets,
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Acceptance Essays
