Goodbye IRS, Hello NST?

I've noticed more chatter lately about the notion of launching a national sales tax along with the elimination of the federal income tax. Still catching up on the details behind it all, but Neal Boortz provides his own detail - complete with hypothetical case examples - of the idea (an idea that would likely never see the light of day) on Townhall.

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National Sales Tax is a

National Sales Tax is a great Idea
National Sales tax is a great idea as it is efficient to collect, pay and administer, very fair (it is not progressive) to everybody including the poor.

Isn't a sales tax

Isn't a sales tax regressive, because poorer people tend to buy more goods?

Also, it would change the current incentive to work on the black market to an incentive to sell goods on the black market. The latter seems easier to me than the former, hence more of these taxes will be evaded. That's fine by me, but the gummint may not like it.

I do like the simple part, though. Would there still be capital gains taxe?

I like the idea, however I

I like the idea, however I know polticians in Washington will screw up the implementation of a sales tax. The worst case being they will have an income tax AND a sales tax. I don't trust them as they've never given me a reason to trust them.

Great idea, but I don't think it'll happen. Not in any way that would actually be helpful to anyone who isn't a lobbyist.

GAAAAH! WHY can't that man

GAAAAH! WHY can't that man present an idea or explain anything without the partisan hack bs and the condescending cretinous smarmy comments about the 'poor, poor pitiful poor'?!??

The national tax sounds interesting, and I'll look up someone else's explanation of it. I can't get through an entire Boortz piece without needing to wretch.

Diana

> "Isn't a sales tax

> "Isn't a sales tax regressive, because poorer people tend to buy more goods?"

If this were true, it would be a surprise to me. I'm by no means rich, but the dollar figure of my own expenditures has increased as my salary has increased over the past decade since I graduated college.

I guess we could find a statistic that indicated poor people buy, on average, more groceries per week than more affluent people do (i.e. because of more kids, and so on). But I figure that an affluent family's purchase of a BMW, Carribbean cruise, or in-ground pool would far outweigh the groceries differential. In other words, poorer people may buy more things on a 'per unit' quantity basis, but the rich would still be paying far more sales tax because of much pricier purchases.

Most, if not all,

Most, if not all, transitions from an income tax to a sales tax regime differentially punish existing savings and reward income as the purchasing power of existing savings is eroded to the extent that embedded taxes removed may not offset the new sales tax. This is effectively a progressive tax when measured against existing exchange wealth and savings.

Regards, Don