Why doesn the concept of a National Sales Tax–elimination of Income Tax catch on more?
Several reasons. 1. A sales tax is a regressive tax. It disproportionally affects the poor. The monthly rebate is a cute idea, but fraud on that would be rampant. 2. The IRS wouldn’t be any smaller — it could even grow. Who do you think would be charged with managing the rebates to the poor? The numbers of field agents would increase massively in order to fight the black market in untaxed goods, for one thing. 3. People could cut their tax bill simply by avoiding discretionary spending. That would have an adverse impact on the economy. Only the relatively well-off could avail themselves of that “tax cut” though. Poor folks don’t spend much beyond basic necessities. 4. Black marketing in untaxed goods would sky rocket. It’s already a small problem with alcohol and tobacco in high-tax areas. Black marketing is typically the bastion of gangs and organized crime elements. Imagine dealing with those types for a TV, DVD or your Captain Crunch. 5. Tax returns from businesses would increase a
