No, you idiots. That’s not how taxes work. – an accountant’s guide to why you are a g

[carolina73]

A national sales tax is a very bad idea. While it is efficient for collection it is an unnecessary burden on commerce & the working poor. For example: the European Union population is about 50% larger than the US, but their GDP is about 10% less than ours, and can be directly attributed to their social welfare & the VAT.

Our entire national debt can be attributed to social welfare. Simply eliminate federal social welfare & its supporting bureaucratic infrastructure. and we could have a flat income tax in the 15% range with minimal deductions, and tax advantaged healthcare savings & retirement accounts.

However, business tax law would also need to be addressed. Those taxes could be eliminated by adding a 10% import duty on everything coming into the country.

I could not disagree with you more.

It is a great idea. I suppose you want to tell all the states that a state and local sales tax is a bad idea?

The rich spend more and the rich pay more
We already have the system in place with gas and sin taxes so it takes nothing new.
Plus you pay the sales tax on foreign goods instead of giving them a free ride.
Everyone pays for the government that you get.

The flat tax would include the payroll taxes.

Import tariffs without purpose do create reciprocity. Tariffs are meant to be punitive and that is how they should be used. They are our only weapon against currency manipulation and predatory attacks on our markets.

Employers will need to look at base wages to compensate for the individual taxes that employees will pay.

Don't give them any ability to have anyone have deductions. All income is individual income not capital gains.

[carolina73]

The FAIR tax eliminates all income taxes and replaces it with a sales tax with a rebate - that helps the poor, who can further avoid the tax by buying used.

It has to be pure. No rebates. No deductions. Employers will fix wages.

[Peter1469]

It has to be pure. No rebates. No deductions. Employers will fix wages.

The FAIR tax included prebates.

[carolina73]

The FAIR tax included prebates.

I know. I have seen those versions but we are better off just adjusting wages.

If you start screwing with the numbers then it will end up in the same place as the current system.