Policymakers Taking Fresh Look At National Sales Tax

The Washington Post :

With budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax.

Read the whole story: The Washington Post

Comments

[Paradym]

I don't know why this wouldn't work:

10% sales tax on all items, except:
- food staples; no taxes on essential food items
- 5% tax on non-essential food items, full 10% tax on junk food
- 3% tax on clothing, full 10% on luxury clothing (boutique, furs, etc.)
- no taxes levied to consumers on home energy needs

Abolish Federal Income Tax. The IRS can switch from collecting sales tax from merchants and not criminalizing citizens. No more confusing and massive tax codes. There would still be deductions for Social Security, but no need to file for returns, just the already established annual report of what's been paid in by each individual. The National Sales tax on certain items can be varied according to economic necessities. In a recession, reduce rates to stimulate the economy, etc.

[sonofsamphm1c]

A 10% rate would not cut it. I

[jmpurser]

Lovely if you plan on wiping out the middle class, driving the nation further into debt, and making the rich as rich as they could possibly be.

This plan would work perfectly for that.

[mwheele86]

Your suggestion to itemize the sales tax would defeat the inherent purpose of simplicity. As soon as you open the flood gate for exemptions this tax would be just as full of loopholes to favored industries as our byzantine income tax system. The easiest way to solve a lot of our problems is to not treat tax code as a social engineering mechanism and save that for policy. The tax code should be purely for generating revenue on a broad basis. Though I highly doubt this would play well with anyone on the hill as it would essentially require them to relinquish one of the most delicious financial carrots they hold over people.

[mergina]

This REEKS of Rom Emmanuel-Daley. Chicago. This toddlin' DEMOCRAT GANGSTER TOWN, with highest taxes in the nation, being sold down the outsourcing corrupt tubes by DALEY AND HIS MOB, and now old Emmanuel and everyone else in this Chicago Administration are ready to do the same to the rest of the country. These reckless pirates are doing nothing to create new jobs. None of them has to live from paycheck to paycheck. None of them cares one bit about suffering Americans, victims of the GREED that is rampant throughout ever fragment of society and just oozing from the cesspool known as American Politics. Remember each and every one of those who support this rip off and send them packing come election time.

[opine2u]

You've got them pegged for exactly what they are, a gang mob of Chicago gangsters ready to rape America's treasury dry, and their new base of operations happens to be the White House with their darling front man at the helm.

[dukeitout]

Finally the good ole US of A is getting around to consideration of a national sales tax. This is great! Those who buy the most would pay the most in taxes. How fair can you get. Our goal must be to implement the sales tax and eliminate all the other gimmick plans. The only ones that would suffer would be the tax preparers.

[jmpurser]

Sales tax is the ultimate gimmick tax.

[Kassandra]

Oh yeah! As long as it comes out of OUR hides. What happened to rescinding the Bush tax cuts on the rich? Nope, can't do that, let's just make the poor, poorer.

[mergina]

Oh haven't you heard, Obama did an about face on THAT TOO.

[opine2u]

Rather than having a 'Flat Tax' of say 10% and eliminating the annual income tax, these fear mongering mischievous money managers, so called financial wizards (ha)! Now along with the Rahm Man in the White House, wish to hit the US with a VAT or GST under the guise of a National Sales Tax or NST of 10 percent. This newly created tax, will be added on top of an American's annual income tax fee, in other words strip mining your last nickel and dime from out of your pocket. To top it all off, the cherry on top of the sundae will be when the State Sales Tax gains momentum and is tacked onto the newly created NST.
You will be paying in essence nearly 20 cents on the dollar more than before, topped off with your yearly income tax payment, with jobs in sight to cover these excessive measures, your man of hope, will be bringing you nothing more than utter despair. Should these measures take place you will effectively be a socialist nation, with no doubt about it? Say good-bye to capitalism.

[jmpurser]

The "flat tax" is an income tax. It's just implemented so foolishly it's hard to recognize.

[ncmom54]

Whatever happend to seriously going after this $100 billion a year?
http://www.huffingtonpost.com/2009/04/15/offshore-tax-havens-a-sta_n_186640.html

[marijam]

Three comments
1. If we had wanted our current health benefits to be taxed in order to provide health care for others, we would have voted for John McCain. We did not, because we do not.
2. RE: A 21 percent VAT has permitted Ireland to attract investment by lowering its corporate tax rate.
Business has pulled out of Ireland, leaving them wondering what the heck to do.
3. Let's eliminate the corporate income tax and in return take away the individual rights of the corporation and rid ourselves of lobbyists. No taxes, no need for representation by lobbyists.

What we SHOULD do is eliminate all federal, state and local income taxes and instead, tax every single financial instrument. Tax them when they come into existence and when they change hands. Sort of a VAT, but on stocks, bonds, commoditiies, derivatives, CDO swaps, etc.

[jmpurser]

Many of our largest corporations aren't paying taxes now. Exactly how do you plan to lower their rates?

[MissingAmerica]

We can ill afford to buy anything as it is. Add a tax to eggs, and we can't afford those. Maybe it works well in European countries, but they get bang for their bucks. The majority of the people in this country get nothing. What we need is to restore taxes on the rich. Can you imagine how much currency could have been generated if the law had made Madoff pay taxes on his yacht and multi-million dollar condos? I've yet to understand a system that decides that those who have less pay more, and when you have a whole lot you actually pay nothing! Sound thinking, huh?

[IndelibleVoice]

Well, the rationale behind that thinking is that there are more who have less -- more to tax -- not to mention that the rich have the power and influence to direct laws and policies in their favor.

But, I agree, why burden the masses who essentially create and maintain the economy...

[bluejay20255]

You get what you voted for.

[jmpurser]

If only. Only in the best of circumstances is that true and it takes a miracle to actually get a chance to vote for what you want in the first place.

[jeffrey678]

Only on foreign content would be OK.

[jeffrey678]

POLITICAL SUICIDE !

[Hemkit]

Yes, please, tax me some more. 9.25% sales tax, state income tax, rediculous property tax on over-valued homes(and I see so many pot holes in the road, where does that money go,) and the IRS. Now they want to think about taxing my grocerys? Let me at least lube up this time...

[freerovingbovine]

We need to boost production and reduce consumption to solve our financial problems. A VAT tax is okay but producers need to sell an item before recovering the tax on costs of production. Also, it is not at all progressive as there is no mechanism for the less well off to recover the taxes hidden in each purchase.

A better plan would be a Universal Transaction tax with automatic proverty level Prebates and Rebates for costs of production, investment and charity.

If we tax consumption and stop taxing production, the trade deficit goes down first, then the savings rate goes up while revenue, proportional to lifestyle, pays off the national debt with no impact to the less well off as every registered tax payer would receive an automatic proverty level prebate.

Under this plan, hard work and investment profits are rewarded while taxes are used to extract the true cost of consumption . The tax base would be so broad that the rate would be too low to notice, while compliance is strictly voluntary and apply only to requesting prebates or rebates.

If anyone is interested I can post the short list of key principles for your comments.

Thanks for your time: "We are free roving homo sapians, we hold are large heads high"

[DSciarrino]

VATs make sense, as long as they are combined with a more progressive tax, such as an "Equity Tax". If we dump the income tax and tax equity at a flat rate (say 5%), you'll have reduced consumption due to the 10% VAT (a good thing given our need to live more sustainably) with a more progressive system that has a flat rate but those with more, pay more. I'd also include a personal exemption of $50k per person in the household. Bottom line: If you want services, you have to pay for them.

[jmpurser]

If you think an income tax is hard to regulate try an "equity" tax.

[Republicrats]

"Since the general civilization of mankind,
I believe there are more instances of the abridgment of freedoms
of the people by gradual and silent encroachment of those in power
than by violent and sudden usurpation­s."
-- James Madison

The pols say then they will cut out income tax for those who make under $100K, but we all know they NEVER will, once the govt gets a source of income from us the NEVER cut it back out, EVER!