IPTs and retail sales taxes
on premiums increase the consumer price of insurance.
Zelenak is certainly correct about the important leadership role that Morgenthau played in rejecting the retail sales tax
and accepting the mass income tax.
(80) The reduction in revenue volatility was to be accomplished through a substantial reduction (and flattening) of the individual income tax rates, a complete repeal of the state's corporate income tax, and a partial repeal of the general retail sales tax
(the state portion of the RST was to be repeal with local sales taxes remaining).
Based on the above analysis, a change in the method of financing local government away from property taxes in favor of retail sales taxes
is likely to have an adverse long-term affect on the ability of local governments to fund growth in their expenditures, provided that there is no other fundamental change in the relationship between the causal variables and pull factors.
(41.) NEAL BOORTZ & JOHN LINDER, THE FAIRTAX BOOK (2005) (arguing that the federal income tax should be replaced by a federal retail sales tax
(4) For an overview of the economic issues relevant to broad-based consumption taxation, see CRS Report RL32603, The Flat Tax, Value-Added Tax, and National Retail Sales Tax
: Overview of the Issues, by Jane G.
A national retail sales tax
is the easiest consumption tax to understand because of its similarity to retail sales taxes
at the state and local levels.
Also, the city is working on slicing an increment from that problematic retail sales tax
for downtown redevelopment use.
Tables 1 and 2 examine retail sales tax
collections (a proxy for retail sales) by sector for the city of Memphis for the 2001 and 2002 fiscal years (Table 1) and year-to-date (Table 2, July through September, latest available).
Laying siege to the welfare state and penetrating it from different angles with new savings accounts will work far better than calling for an immediate replacement of the income tax with a flat tax or national retail sales tax
, according to the author.
The alternatives to the income tax--the retail sales tax
, value added tax (VAT), and the Hall-Rabuska Flat Tax--are described and critiqued in Chapter 7.
Chapter seven examines consumption tax alternatives to the income tax, including a retail sales tax
, a value-added tax, and a personal consumption tax.