Some of these reforms might involve improvements to the current retail sales tax
The FairTax is a progressive, revenue-neutral consumption tax in the form of a national retail sales tax
on all services and the final sale of all new goods.
They are (1) a consumed income tax, (2) a value added tax (VAT), which could take the form of a subtraction method VAT, a credit invoice VAT, or a retail sales tax
(RST), which is analytically equivalent to a VAT, (3) a two-tier consumption tax based on a VAT, and (4) a yield exemption tax.
6 million in new retail sales tax
, property tax and business license taxes annually.
B2C and B2B sales thus give rise to problems for both revenue and efficiency under the retail sales tax
As inflation goes up, the cost of goods sold to consumers increases, thereby increasing retail sales tax
Table 1 presents local option retail sales tax
collections for Shelby County, including all municipalities and unincorporated areas, for January-September 2000 and 2001.
The Commission laid out the universe of ideas, ranging from a retail sales tax
to a flat tax to a cash flow tax, but left the weighing of the benefits and burdens of the proposed alternatives to the reader.
The value-added tax and the national retail sales tax
, which are direct taxes on consumption, would have much more of an impact on our business than an indirect consumption tax like the flat tax.
Critics of a federal retail sales tax
who point to the danger of politicians simply adopting the retail sales tax
on top of reduced rates for the present system have a very legitimate concern.
Moreover, data for twenty-three OECD countries indicate that neither consumption taxes in general, nor a VAT or retail sales tax
in particular, have any impact on the rate of saving.
The Center looked at the level of per capita retail sales tax
collections relative to per capita income.