1) Which do you prefer:
a) a tax system that allows some people to hide their income and pay no taxes while others get hit with tax on all of their income; or
b) a tax system that hits everyone equally, even those involved in the so called underground economy?
2) Which do you prefer:
a) a tax system which causes local companies to pay taxes while foreign companies can sell their products without incurring any taxes; or
b) a tax system which imposes the same taxes on local products as on those made elsewhere?
These are not hard questions. Clearly, it makes more sense to hit both honest and dishonest folks with the same taxes, in essence to take away the incentive or the ability to cheat on one's taxes. It also makes sense to impose the same taxes on local and foreign made products rather than giving the foreign products an advatage which hurts local manufacturers.
If you agree with these answers, then you should support getting rid of the income tax in favor of a sales tax. Before you start groaning and moaning about how unfair the sales tax would be, consider this:
1) A sales tax would force everyone to pay taxes equally. The people who work "off the books" would no longer get to earn tax free income while the rest of us pay for government services. The criminals who earn millions selling drugs would have to pay sales taxes just like everyone else. There would be a whole new source of income that would be subject to taxation, namely all that hidden or criminal income currently avoiding taxes.
2) A sales tax would apply to goods made in your town just the same that they would apply to those made in China. The local goods would no longer have to earn enough to cover the state corporate income taxes, a cost that the Chinese good would never have to incur. Local companies would become more able to compete with the foreign products.
3.) There could easily be an exemption of certain types of sales so as to avoid unfairly burdening the poor with these taxes. For example, food could be free from taxation. Restaurants meals would be taxed, but the basic foodstuffs we all need would not. Certain types of lower cost clothing could also be free from taxation. There is no need to keep a $800 leather coat untaxed; it is not a necessity. On the other hand, a $30 jacket could be free from taxation.
This type of structure is similar to the one that Louisiana governor Bobby Jindal is trying to get adopted in that state. The goal is to switch the tax structure but to keep the resulting revenues the same. If that can be done, it should make Louisiana's tax structure both more equitable and more conducive to promoting economic growth.
This is an idea whose time has come.
a) a tax system that allows some people to hide their income and pay no taxes while others get hit with tax on all of their income; or
b) a tax system that hits everyone equally, even those involved in the so called underground economy?
2) Which do you prefer:
a) a tax system which causes local companies to pay taxes while foreign companies can sell their products without incurring any taxes; or
b) a tax system which imposes the same taxes on local products as on those made elsewhere?
These are not hard questions. Clearly, it makes more sense to hit both honest and dishonest folks with the same taxes, in essence to take away the incentive or the ability to cheat on one's taxes. It also makes sense to impose the same taxes on local and foreign made products rather than giving the foreign products an advatage which hurts local manufacturers.
If you agree with these answers, then you should support getting rid of the income tax in favor of a sales tax. Before you start groaning and moaning about how unfair the sales tax would be, consider this:
1) A sales tax would force everyone to pay taxes equally. The people who work "off the books" would no longer get to earn tax free income while the rest of us pay for government services. The criminals who earn millions selling drugs would have to pay sales taxes just like everyone else. There would be a whole new source of income that would be subject to taxation, namely all that hidden or criminal income currently avoiding taxes.
2) A sales tax would apply to goods made in your town just the same that they would apply to those made in China. The local goods would no longer have to earn enough to cover the state corporate income taxes, a cost that the Chinese good would never have to incur. Local companies would become more able to compete with the foreign products.
3.) There could easily be an exemption of certain types of sales so as to avoid unfairly burdening the poor with these taxes. For example, food could be free from taxation. Restaurants meals would be taxed, but the basic foodstuffs we all need would not. Certain types of lower cost clothing could also be free from taxation. There is no need to keep a $800 leather coat untaxed; it is not a necessity. On the other hand, a $30 jacket could be free from taxation.
This type of structure is similar to the one that Louisiana governor Bobby Jindal is trying to get adopted in that state. The goal is to switch the tax structure but to keep the resulting revenues the same. If that can be done, it should make Louisiana's tax structure both more equitable and more conducive to promoting economic growth.
This is an idea whose time has come.
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