General Discussion
Showing Original Post only (View all)Blasphemy: a National Sales Tax would be MUCH better than our present or any Income Tax system [View all]
Let me start by saying that I strongly disagree with the biggest myth that keeps us operating under an income tax system: that a national sales tax would disproportionately and unfairly hurt lower and middle class people. The reasons that's an incorrect assumption? 1) Because different items for purchase can easily be taxed at different rates 2) some items don't have to be taxed at all 3) taxes can be instituted on items and transactions that are not currently taxed 4) government refunds of sales taxes can be easily instituted.
On the contrary, it's our current income tax system that hurts the non-rich. Why? Several reasons: 1) Income is easy to hide, understate, and manipulate 2) Items and transactions that are deducted as expenses to lower taxation are not necessarily relevant nor necessary to producing the associated income (In other words, the fortunate can presently subsidize luxuries under the guise of expense). Furthermore, as far as our current system goes, there are many transactions which should be taxed but are not (most egregiously: the sales/transfers of equities and real property).
All that aside, I'm here as a former corporate accountant to tell you that fully one third of my work was devoted to satisfying government information and reporting mandates because of an income tax system. Elimination of income taxes (and most of the IRS) in favor of a much easier to operate national sales tax system would be a boon to corporate productivity.