I've been touting this for years.tacticool wrote:The advantages to a national sales tax replacing the individual income tax are less opportunity to cheat, reduced paperwork for individuals, no exemptions for illegal aliens and others working off the books, less opportunity to cheat, and everyone pays their fair share no matter how many kids, wives, homes, or other loopholes they claim.
Our current system is a tax on productivity, not wealth. If a billionaire just sits on their money without investment, they can pay zero taxes for as long as they want. They only owe something if they choose to be productive with their money. The current system discourages productivity.
A sales tax would (slightly) discourage consumption. Economists might be scared of that in the short term, but it'd be a nice change. First, those who consume the most pay the most. You can ride out your fortune and hide. Second, you could still make such a tax progressive if you want by declaring luxury rates for certain classifications of good and keeping basic staples tax free. Third, Americans (at the individual and family level) would benefit in the long term if our system discouraged (if it actually did) consumption and encouraged savings.
We need to remove all impediments to productivity.