National Sales Tax vs Income Tax
The National Sales Tax vs. The Income Tax Only days after the last elections for Congress in November of 1994, CongressmanBill Archer declared his strong desire to "tear out the income tax by its roots." After that,Newt Gingrich and Bob Dole formed a commission to consider new alternatives to theincome tax. That lead to more than a half dozen congressional panels holding hearings onthat subject. So there is no longer a question of whether the income tax system will bereplaced or not, the question now is, what should it be replaced with? Well, a nationalsales tax is an option that cannot be ignored, even though it may not be the best solution. The case for a national sales tax begins with one greatly appealing line. It willallow us to completely eliminate the income tax, possibly even repealing the 16thAmendment, an amendment that authorized the income tax and made it a part of thegovernment in the first place. However, the change would come at a cost greater thanseems fair: we would give up the income tax for a sales tax system that is more If the government sets out to collect a new tax at the register when something isbought, it will then have to extend that tax b
Even very simple purchases, such as a farmer selling his produce on theside of the road or the corner grocer selling a loaf of bread, would be under the shadow ofa government tax collector collecting his cut of the sale. Leave the system as it is with the income tax, or use a flat-taxsystem. A flat-tax will put into place a single tax rate on all income. For example, a plumber that makes ahouse-call may not report the money he makes off of that house-call, so if there was asales-tax, the person who called the plumber in the first place would not pay the sales taxon that house-call either. Under any type of sales-tax system, people would still need to file paperworkwith the government, only they would have to do it for totally different reasons than theydo under the income tax system. Whether or not the national sales tax evolved into a value-added tax, thegovernment would become very closely involved in just about every transaction betweenconsenting adults. For as much trouble as the paperwork, and time it takes to fill out the paperwork,is the income tax system that is currently in place seems to be the only system that worksfor this time. People will be ableto spend their money however they want to do it and will not have to take taxes into account before they spend. Because the sales tax would be so high, the governmentwould almost have to make a select amount of products exempt from the sales tax, somany of the sales-tax proposals include something about a rebate. Instead, the states would collect the new federal sales tax throughtheir own existing sales-tax systems. Suddenly, consumers will be seeingthat everything they buy has been increased in price by that 20 percent. While there are 50 states inthe United States, only 45 of them currently have a state sales tax, which leaves five stateswithout. It should be left alone until it absolutely needsto be changed and something that will really work can be created and easily implemented. With the sales tax in place, many Americans would befacing a great increase in tax.
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