Compare and contrast the flat tax and national sales tax
systems as applied to individuals, using the principles of simplicity, transparency and minimum tax gap.
A national sales tax
or a VAT, in contrast, would require the average price of consumer goods and services to rise relative to production costs and wages.
The National Governors Association is seeking a "21st century sales tax," essentially a national sales tax
, where companies would collect sales tax on every purchase and remit it to the state where the purchaser resides.
Some have charged the Republican Congress with hypocrisy for promoting radical, supposed "tax simplification" measures like the flat tax or a national sales tax
while at the same time pushing huge new complexifications like the tax act.
* Federal tax reform A national sales tax
or a flat national income tax would force substantial change and conformity on state taxes.
Burton, predict a far healthier economy if the current tax system were replaced with a national sales tax
. Such a tax, Burton argues, would reward individual decisions to work, save, and invest, while the current law favors consumption of goods and services.
Individual and business income taxes would be replaced with either a national sales tax
, or its close cousin, the value-added tax.
Bill Archer (R-Tex.), hasn't taken a specific position on not-for-profit tax issues, but he is known to favor a national sales tax
as a substitute for the income tax (obviously, this would eliminate charitable deductions, and although such a radical overhaul doesn't stand a snowball's chance in passing, it does characterize Archer's sympathies).
All things considered, a flatter and simpler income tax system that retains preferences for housing was ranked first, followed by a consumption tax or national sales tax
that does not tax spending on housing.
As an added bonus, a national sales tax
would get at the underground economy.
The National Retail Association is opposed to the idea of a 17 percent national sales tax
. The organization is still studying the flat tax idea.
Then there's choice number three: the national sales tax
. This is a sweeping plan to wipe away the current system and replace it with an unprecedented federal tax on retail purchases.