National sales tax

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Feb 17, 2013
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Hey CC'ers I was wondering how y'all would feel about a fed sales tax. I'm talking about maybe 5 to 10%. I mean for every dollar you spend ( say if it 5%) would cost you $1.05 plus what your state and county already charge. So where I live that dollar candy bar would cost $1.13. This would abolish the IRS and you would receive you full pay check.

I think it would more than fund the U.S government. What do y'all think?
 
I mean if you think about it. That could add up to hundreds of millions per day, if not much more based on the percentage. The deficit could be paid down and are seniors and those who can't work would be taken care and have the best military in the world.
 
Take a second and look at your w2. Look at the part that says medicare. Do you realise that the company you work for has to match that. For every employee they have. Just think how much prices would drop if companies didn't have that expense.
 
It could be a good idea, Earl...but I don't think the gov't would use the tax revenue for what it would be meant for.

I mean, when have they ever? :)
 
Hey CC'ers I was wondering how y'all would feel about a fed sales tax. I'm talking about maybe 5 to 10%. I mean for every dollar you spend ( say if it 5%) would cost you $1.05 plus what your state and county already charge. So where I live that dollar candy bar would cost $1.13. This would abolish the IRS and you would receive you full pay check.

I think it would more than fund the U.S government. What do y'all think?


I think you are thinking of the "Fair Tax" proposal. If done right it could work. As a business owner who would be required to collect said tax I would not be opposed to it if they got rid of every other tax also. What would need to be included is that the payroll taxes that the businesses pay to the government that you don't don't see on your paycheck,should go to the individual and not the company. (The companies matching portion of your FICA and payroll taxes)

They would also have to make it at the final point of sale otherwise if it's a sales tax on raw goods for manufacturing then you have a value added tax which would most likely make that candy bar $1.35 instead of the $1.10 before state sales taxes. A value added tax,taxes the product all the way down the line.

And you wouldn't have to fire the IRS agents,but then they could move them to the customs department to deal with all the imported items where sales tax would need to be collect also.

The rate that the sales tax would to be though would have to be 17.2 % to be effective. (Strange how the two parts of the payroll tax is about 15% so it would NOT affect the poor all that much in the long run)

Factor in corporations would not be paying income tax either (Sales tax yes) and it could be a great thing to bring jobs back into this country because they would remove a big stumbling block to industry.

(I myself have heard about it,like it better then the nightmare of a tax system we have now and it could be very good in the long run,it will be a pain in the rear end at first)
 
Take a second and look at your w2. Look at the part that says medicare. Do you realise that the company you work for has to match that. For every employee they have. Just think how much prices would drop if companies didn't have that expense.

Because I am self employed I know all about that because I have to pay both parts myself.
 
Yeah maybe 5% is to small But 10 % percent of all sales. Wow, we could fund the world. Do the math 10 % of all transactions in a day. Across the whole country. I get my full pay, minus health insurance of course. The economy would go of the chart.
 
Hey CC'ers I was wondering how y'all would feel about a fed sales tax. I'm talking about maybe 5 to 10%. I mean for every dollar you spend ( say if it 5%) would cost you $1.05 plus what your state and county already charge. So where I live that dollar candy bar would cost $1.13. This would abolish the IRS and you would receive you full pay check.

I think it would more than fund the U.S government. What do y'all think?

Consumption taxes are constitutional as opposed to our Marxist income tax system. It would also end the slavery of U.S. citizens to perform for our government without compensation, while being subject to pain of imprisonment by our masters, simply for failure to file.

"None are more hopelessly enslaved as those who falsely believe that they are free" - Johann W. Goethe

Talk about present circumstances being on the wrong track.

"Encouragement of consumption is no benefit to commerce, for the difficulty lies in supplying the means, not in stimulating the desire of consumption: and we have seen that production alone furnishes those means. Thus, it is the aim of good government to stimulate production, of bad government to encourage consumption." - Jean-Baptiste Say - "A Treatise on Political Economy", 1803

Nothing new under the sun.
 
a national sales tax would be a good thing...for one thing it would encourage saving...which is kind of a lost art nowdays...

but they would need to make exceptions for things like food...so that the tax would not hinder the ability of people to provide for their basic needs...
 
I would like to abolish property, income, inheritance, and a number of taxes. I wouldn't much replace it either. Government spending could be cut dramatically, and needs to be. If I didn't have to pay income taxes, I could spend a lot more money.


I made a little over 10k last summer to pay for schooling. About 33% of that was cought up in taxes before I got returns. The return was about half of the 33%. If I could put the remaining almost 2k dollars toward paying for school, which means less government debt, and less beauracrats that do paperwork to collect my money, and then more paperwork to return a portion of it.

... but not, let's just bankrupt the country.

[video=youtube;XvwZIljkC8E]http://www.youtube.com/watch?v=XvwZIljkC8E[/video]
 
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[SUP]Honestly I'm more a proponent of the flat tax instead of a national sales tax. With the flat tax everyone pays the same percentage regardless of how much they make (or spend). Sure, at least the sales tax would solve the problem of people working "under the table" and would potentially encourage people to save money since you don't get taxed on what you don't spend, but IMO it would have the end result of placing an unfair burden on the lower income brackets.

If you think about it, the lower income brackets spend 100% of their income without the ability to shelter any of it from taxes, yet the higher income brackets who have larger quantities of disposable income would be able to shelter potentially large quantities of income through investment, savings, and spending overseas.
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[SUP]Honestly I'm more a proponent of the flat tax instead of a national sales tax. With the flat tax everyone pays the same percentage regardless of how much they make (or spend). Sure, at least the sales tax would solve the problem of people working "under the table" and would potentially encourage people to save money since you don't get taxed on what you don't spend, but IMO it would have the end result of placing an unfair burden on the lower income brackets.

If you think about it, the lower income brackets spend 100% of their income without the ability to shelter any of it from taxes, yet the higher income brackets who have larger quantities of disposable income would be able to shelter potentially large quantities of income through investment, savings, and spending overseas.
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How would you determine income for a self employed person,a small business and a corp? Gross or net income? And at what percent? If you base it on gross and the business,self employed or corp works on very small margins but makes it up in volume then they will have to raise prices to cover the flat tax. Say you have a flat tax of 15% but base it on gross then the business has to cover all the running expenses,all the supplies,all employers salaries and taxes. But say they have a profit margin of 10 % where does the money come from to cover the difference?

IE a manufacturer of screws say can produce 5,000,000,000 with a profit of 0.5 cents per screw will end up with a profit of 25,000,000 dollars. But they charge 5 cents a screw so gross income comes to 250,000,000 dollars. Now if you charge a flat tax of 15 % on that business on gross the tax alone is 37,500,000 dollars which is FAR more then the profit they made. (The 25,000,000 would be their adjusted taxable income) Now if you go adjusted you still have the same system trying to determine what is taxable income. Which is where the problem lies with the current system.

If you received all the income and FICA taxes on your paycheck you would have a net raise of 15% (The half paid by the business for their portion of those taxes and the part that you pay off your income) See and the other part that they want with the fair tax is everyone would receive a prebate which is explained here.

Fairtax.org

http://www.fairtax.org/PDF/PrebateExplained.pdf

The higher income tax brackets already put money overseas,offshore accounts and other book keeping tricks. Can't do it at the cash register so much. Plus don't forget we do also have customs in which all items being brought into the country also would be taxed (As most are already)
 
Plus don't forget we do also have customs in which all items being brought into the country also would be taxed (As most are already)
Indeed, duties are a constitutional tax. Few folks realize it but the freedom that citizens of the Bahamas enjoy - as just one example jurisdiction - is inconceivable to U.S. residents in this day and age, even as it is the same brand of freedom that our forefathers enjoyed. There are no income, property, sales or death taxes levied on Bahamian citizens. Government revenue is raised through duties (constitutional tax in U.S. - as opposed to the Marxist income tax), which people are paid (customs brokers) to collect. Not a citizenry enslaved to produce paperwork and payments to their government four times a year or face imprisonment. It is a shame that it is automatically deducted from paychecks rather than everyone having to pay - or at least be required file - four times a year (and suffer the penalties for forgetting to do so now and then), or we might find more folks interested in abolishing the income tax. Indeed, the only truly free citizens of the U.S., are homeless dumpster divers.

For anyone who has deceived themselves into believing they own their home, all you have to do is simply run out of money to pay the property taxes, and you will discover who the real owners of your home are. You are little more than a renter - a squatter on government land. Millions will discover this when the Chinese call in their markers - (collapsing the U.S. dollar while sending interest rates skyrocketing resulting in trillions of dollars due annually in interest alone on our crushing national debt) - and begin to buy the United States house-by-house on the courthouse steps. Who knows. If Jesus doesn't return first, perhaps they will be sending our grandchildren to China, to build railroads. Home "ownership" is today more of a wealth transfer scheme, to extort money from people who have no children or whose children may be decades past school age, to keep the broken school systems of the NEA afloat while enabling the NEA to finance liberal politics.

When a Bahamian buys a house, no matter what happens to the Bahamian economy, the roof over his head is not at risk - unless he put it at risk himself by borrowing money. When he dies his heirs get the house - and not with a big fat inheritance tax that forces the sale thereof to pay the tax - like in the case of U.S. family farms. His heirs simply get the house, along with all of the other fruit of his labor that he worked all his life to produce, so his heirs could enjoy a little better quality of life than himself. There is a small employment tax collected for workers comp toward helping out with with workplace injuries. One of the biggest reasons their system still works, is there are no frivolous lawsuits, and Bahamian citizens are independent, as opposed to wards of a welfare State. They don't, for example, whine like little girls for the government to make them whole, after they have chosen to gamble their money in a stock market, and then loose it through their own foolishness. No surprise to find then, that the Commonwealth of the Bahamas is still a fiercely Christian nation. However if that kind of freedom, liberty, independence, and a citizenry that recognizes personal responsibility and takes care of their elderly themselves, entices anyone into considering changing citizenship, you can forget it - they won't have you.