If we were to eliminate the income tax, then we would need a
replacement to fund things like the military, and parts of the government.
The only truly viable solution is a sales tax at the federal level.
What would that entail? Let us discuss.
Sales Tax: The legal reasoning that
sales taxes can exist is that it takes place during the brief transition period
when one person's property is sold for something of equal value (in this case
money). So that exchange of property (money is also your property) is the
loophole that allows it to occur. Keep in mind that if nothing is
expected in return, say with inheritance, this loophole does not exist for
there is nothing of value being exchanged.
There is a few forms that this tax comes
in with respect to how it is implemented and used. In this case the sales
tax will be on the final sale of goods. Basically when you shop for a
book, a computer or other product. New homes also count as well.
But we cannot have exceptions for this to work. As such, food and
medicine will also need to be taxed as well. Why? You ask. Simple,
by placing any exceptions, then the taxes on the other items will go up to
compensate which may make other goods too expensive for the poor. Your
counter argument at this point is, that despite my argument, sales taxes make
food and medicine more expensive and thus hurts the poor regardless. I am
correct right? Well, here is my counter to that. It will only
affect a very small group of the impoverished in our nation. Reason being
is that as the poor are taxed via the income tax, they must expend time and
effort to keep records and other time wasting exercises that are expensive all
just to comply with the current tax code. But by eliminating income taxes
and most all other taxes, they will have the money to afford those goods like
food and medicine (though medicine becoming cheaper is also an additional issue
that must be addressed). So, all other taxes (save property which will be
tomorrow's issue) are gone save sales taxes on all goods. This means that
all the taxes on businesses and investments that hinder profit, economic, job
and income growth are now eliminated. Therefore the poorest person would
be the people who are homeless, which again is another issue that needs to be
addressed in a different way, though eliminating taxes that would potentially
harm their ability to get out of homelessness is a big step in the right
direction.
A sales tax is also fairer. There is
also no longer any special deductions, or special interests to try and
manipulate the tax code. No more tax cheats either as people are paying
taxes when they buy goods. As such, the businesses are collecting the
taxes for us, from our buying items. So we pay more taxes if we spend
more, and pay less taxes if we spend less. In such a system, we the
consumer decide how much too actually pay in taxes per year. And now you
may be asking, but the government will be lobbied anyway to make exceptions and
keep the other taxes? Yes that is true, but if we remove the 16th
Amendment to the United States Constitution which allows the government to tax
us directly, then it is possible if the amendment creating the sales tax is
worded properly. In this case, the amendment would read something like this: The United States federal
government is hereby authorized to establish a sales tax on all goods bought
and sold in the United States. However, there shalt be no exceptions on
to what items are taxed and that the rate upon which those items value is taxed
for all goods must be equal without question or exception. Basically,
no exceptions and no taxing one good more than another. A truly fair and
equal tax without any chance of corruption save ignoring the constitution.
Conclusion: So what do you think of only paying
a sales tax? No need to worry about tax day or accidentally owing money
to the IRS. No more the government looting your bank account. Also, no
more people not paying taxes as drug dealers, prostitutes and others who engage
in illegal activities which are not taxed must still buy food, and buy other
goods as well. So they are taxed as well, which means they finally
contribute to taxes. Tourists will pay the tax too, which means tourism
equals higher revenue for the government too which reduces the needs of the
government to gather funds from solely its citizens. It can work, but we
just need to give it a chance.
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