America has not always burden its’ citizens with income taxes. In 1913, the 16th Amendment to the Constitution made income tax a legitimate part of the U.S. tax system. In 1943, withholding tax on wages was introduced. Since then, the labyrinth of convoluted rules and regulations that make up our current tax codes have spread across tens of thousands of pages that are written in such cryptic fashion that even accountants and tax lawyers argue their meanings. Albert Einstein is quoted as saying “The hardest thing in the world to understand is the income tax.”
Regardless of their complexity, we the taxpayers are expected to understand and abide by them or pay stiff penalties. The current tax codes are intrusive and place the biggest burden on those who can least afford it.
My proposed National Sales Tax calls for the elimination of Income Tax for anyone living within any area or territory that has representatives in our house of congress. For American citizens living in foreign countries they will continue to pay under the existing Income tax statues.
This National sales tax will take into consideration essential items, such as food, medical services, or supplies, and designate them exempt from the burden of taxation. On the other hand, a heavier burden of sales tax will be leavied on luxury items. For example a car costing over a hundred thousand will have a higher sales tax rate than a car costing only 20 thousand. A standard flat sale’s taxs rate will apply to all services and items that are categorized as basic needs, but a surtax will be levied on all items and services designated as flamboyant or as an ostentatious purchase. Additionally a tax credit is provided to assure that workers at or below the poverty rate will pay no sales taxes. The formula would be adjustable for non-working spouses and children.
For too many years political leaders from both parties have paid lip
service to income tax reform but have made few significant changes. Perhaps it is because these same leaders are among the privileged few who benefit enormously from the current tax status.
Under a National Sales tax, there would be no longer a vehicle for politicians to serve special interest groups by offering special tax incentives that benefit insiders while increasing the tax burden for the common person.
In 1997 a very well crafted bill H.R. 2001 was introduced by Congressman Tauzin to eliminate income tax, but it lanquished in the house and never saw the day of light. Now we have a National Retail Sales Tax Alliance that is evolving to help promote this important platform issue. A new bill sponsored by Congressman John Linder (R Ga) was introduced as HR 25, this is also an excellent program that includes much of what I advocate. Getting this bill or my bill passed will be a revolution of its own in America.
I estimate that the direct savings to the U.S. government, by eliminating all of the bureaucracy currently needed to support the IRS, would exceed $600 billion per year. This money could be directly invested in grants and programs that target the elimination of our dependency on foreign oil, help improve our education programs and provide capital to create jobs for the youths of gang plighted neighborhoods.
Under the National Sales Tax plan, revenues would be increased because, for the first time, we would have the ability to collect taxes from every person who buys goods and services. Our tax base would now include illegal aliens, non-resident aliens, vacationers, and anyone purchasing anything within the United States. Drug traffickers, gamblers, scammers, thieves, or any other individuals operating illegal enterprises would now find no way to escape their taxes. This group would now pay taxes in the same fashion as the rest of the citizens of our country. My plan would automatically give us the ability to collect revenues from all who participate in underground economies.
A great deal of savings would be realized by the sheer fact that collections would be far easier and millions more would be saved by the elimination of the enforcement bureau of the IRS. With a National Sales Tax, you would eliminate the need to find and prosecute tax payers for making incorrect payments, succumbing to erroneous advice from unscrupulous tax accountants, failing to keep proper records or simply misunderstanding the terribly complex tax codes. A national Sales tax would basically protect you the citizen from being inadvertently criminalized or even imprisoned for failing to understand some obscure tax code.
Under my plan, there would be no Federal income taxes taken from your paycheck, interest on your savings would be free from taxes as would capital gains from investment transactions. You would only pay tax on the amount of money you spend and that tax would be the same for all people regardless of their income level.
My program further calls for the transformation of the Internal Revenue Service from a bloated and iron-fisted bureaucracy to a simple accounting arm of the Department of the Treasury that is charged with the responsibility of collecting and processing National Sales Tax payments.
The trickle down effect of this plan would be enormous. Companies and private citizens currently pay billions of dollars per year to accountants and tax lawyers to comply with our current complex tax laws. These fees would be eliminated overnight and that money would become available to reinvest in the companies and the people who work there. Personal savings would grow as well.
Other benefits of my plan include:
- Effortless tax reporting because there would be no tax forms to fill out.
- Elimination of the IRS with tax revenues being administered by the Treasury Department in a similar way that state sales taxes are handled right now. The tax would simply be be collected by businesses that sell goods and services.
- All citizens and businesses would be taxed at the same rate. Those that spend more would pay more taxes, while those who spent less would pay less.
My National Sales Tax proposal empowers the people to decide what their
tax liability should be and takes this power away from the government. If you choose to buy luxury big-ticket items then you will pay a higher tax than those who are satisfied with lower-priced goods.
Your disposable income will go up and your ability to save and invest will be limited only by your salary.
This does not have to be a dream. We can eliminate the current unfair income tax system and replace it with a cost-effective and fair model while, at the same time, ensuring our nation's peace and tranquility by expanding our tax base and making taxes as simple as possible . And maybe April the 15th wiil then become a day of celebration instead of a day of dread. All it takes to make this happen is your vote for me.