Originally Posted by opie
My average effective tax rate is 11%. Right now we pay a 6% sales tax. SO essentially someone in my position would pay an additional 1% in tax. I think we could swing that. National sales tax, flat tax.. Personally I think its a great idea. Eliminate the need for the IRS and filing all together.
Now, certainly for the folks that have a 0 or net negative tax liability, any type of flat tax is going to hurt them. The entire situation is a catch 22, someone is going to get screwed. I personally believe everyone should be paying some amount of income tax. Regardless of level of income. I dont care if its just $1. Either that or the level of services provided by the Government via the taxpayers needs to shrink. It doesnt work and the proof is right in front of everyone.
I stated that I was talking about the person who is barely getting by. If you are currently paying 11% in income tax I was clearly not talking about you.
And the 9% sale tax would be on top of the current 6%, so the total would be 15%.
We would still need the IRS with a flat tax. Maybe it could be smaller, but any reduction in size would be more than made up for with the added bureaucracy and infrastructure for collecting the nation sales tax.