National Sales Tax

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There has been much debate in replacing the current tax system with a national sales tax that would eliminate individual and corporate income tax, the capital gains tax, and the estate and gift taxes. With the national sales tax consumers would instead be charged on the final purchase of all goods and services at the retail level. If national sales tax were to be put into effect, it would change much of the current frustration with taxes.
With the national sales tax there would be no need to file taxes by a deadline, since everyone would have already paid their share of taxes at the register throughout the year. Taxpayers would no longer have to spend time filling out forms that require them to reveal personal information to the IRS on how …show more content…

The national sales tax would put an end to the anti-capital bias, because the national sales tax would only be charged on finished products. Manufacturers are amongst those that stand to gain the most from getting rid of that system and replacing it with the national sales tax. All goods or services would be exempt if they are purchased for use in the production of the taxable goods and services. So, if a manufacturer purchases a new machine that it will use to production, then the product will be taxed instead of the machine. Businesses would also benefit from being reimbursed for their administrative costs …show more content…

The national sales tax would eliminate the individual income tax, corporate income tax, capital gain tax, estate tax, and gift taxes. Instead the national sales tax at the proposed 15 percent would be charged on the final purchase of all goods and services at the retail level. Households at or below the poverty line would receive a rebate for every penny they paid for the national sales tax (cato).
However, the national sales tax could also have regressive effects that benefit the rich. If the sales tax is measured on the dollars spent per dollars of income. Since, the poor spend a greater percentage of their income, it would hurt them the most. The national sales tax could counter act this by providing a prebate of taxes up to the poverty level. The national sales tax would measure and individual’s productivity and the value of their yearly labor instead of just basing taxes on income

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