Do you believe that, during your lifetime, the current USA federal income tax (and the IRS) will be eliminated and replaced with a federal sales tax?

1 Answer

Answer :

I don’t think a national sales tax is the answer. Now, I’m no economist, so my logic may be faulty…but here goes: For the purposes of this example, assume all 3 families consist of 2 adults and 2 children, and live in the same area. All 3 families must feed, house, clothe etc. the same number of people to have their basic needs met. Now, if we have a national sales tax and Family A earns $25,000/year, Family B earns $75,000/year, and Family C earns $300,000/year, then the tax bite felt by Family A will be bigger than the bite felt by Family B, and far bigger than the one felt by Family C. That doesn’t seem like a fair tax law to me. I’d think the only way to make it fair and across the board is to go with a flat percentage rate tax on income only, paid by everyone.

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