Boston Globe does fantastic editorial on how stupid nat sales tax is

[Killarney]

http://www.boston.com/news/globe/editorial_opinion/editorials/articles/2004/08/13/income_tax_evasion/
But eliminating the income tax is a radical idea. Voters should not be fooled by any such proposals, often dressed up as "tax simplification" or "tax reform." The Internet is full of websites devoted to blowing up the IRS and replacing the income tax with a national sales tax at a single rate. Supporters claim that this could eliminate all corporate and self-employment taxes, the estate tax, capital gains taxes, and the payroll tax and free Americans from ever filing IRS forms again. But when small-government activists begin to speak of making taxes fair and simple, the middle class had better hold on to its wallet...

The Fair Tax Act of 2003 -- sponsored by Republican Representative John Linder of Georgia -- would have eliminated the income tax and established a national sales levy at 23 percent in order to maintain the current level of federal revenue. But the regressivity in such a proposal is obvious: People earning less income spend proportionately more on the necessities of life than high-income people. A person earning $20,000 who spends 100 percent of it on rent, food, and other requirements would have an effective tax rate of 23 percent of income. A person earning $100,000 spending the same $20,000 would have an effective tax rate of only 4.6 percent. Even accounting for the likelihood that rich people would spend somewhat more, there is nothing fair about that.

[NewYorkerfromMass]

1. Sales taxes tend to be regressive and hurt the little guy

Edwards will be all over this.

[beyurslf]

2. I am so happy the Republicans are talking about this.

Talk about a middle class tax increase!

[ochazuke]

3. Make it work and put a stake in their hearts

I mean if the national sales tax idea was modified, it could put a stake in the heart of the Republican party.

Exempt food, rent and other neccessities. Give back like $500 a year to every American to compensate them for taxes paid. Since the amount is the same regardless of income, that's progressive.

Keep the income tax for people earning over $100,000-$200,000/year. Make it progressive, too, but no deductions, exemptions, credits, or other loopholes. This would eliminate most of the bureacracy of the IRS as well as all those tax lawyers and accountants' jobs.

How about it?