Why All Sales Tax Should Be Banned Forever

Since the creation of the United States, they loathed taxes, especially when the British taxed them without any representation. The United States anger towards taxes started the American Revolution; However, the United States needed some form of taxes to pay for the military. The military and several other things are what makes a country; however, there are some things that taxes pay for that should either be terminated or improved. A few things that taxes pay for does not contribute to the economy, instead, it costs the taxpayers excessive amount of tax money. In order for the country to decrease taxes or contribute to more education, security, and modern infrastructure, they need to terminate or improve the welfare and the war on drugs.

The current tax policy in the United States is very confusing and it is very costly for our government to administer it. It is in the best interest of our country and its citizens to revise or replace our current tax policy.

Taxes are unavoidable because government is needed and government operates on tax revenues. The FairTax is a tax-inclusive progressive national retail sales tax that replaces every other federal tax in America. The new national sales tax would be 23%. Although there have been some questions as to whether the sales tax rate is 23% or 30% and they stem from the meaning of tax-inclusive and tax exclusive. The sales tax in Florida is an example of an exclusive tax because it works of a preset base. If a person buys something for 1$ and pays a .30$ tax on it the sales tax is 30 percent because it is .30$ on the dollar. With the inclusive tax the item would cost 1.30 because the tax is included with the cost. The tax rate of 23% is calculated by

Throughout the entire existence of any form of government, there has always been taxes. Most of the time (if not all), people hate taxes. With this being said, the United States has adopted a progressive tax since its very existence. We believe that if our nation is placed under a flat tax system, our economy will operate more effectively. If we incorporate a flat tax system we will be able to ensure fairness among all citizens, eliminate tax loopholes, and allow opportunities for business expansion. With this being said, we will be examining the strengths and weaknesses about the flat tax system and how it has been used into practice.

The first proposal to impose an income tax on Americans occurred during the War of 1812. After two years of war, the federal government had accumulated a whopping $100 million of debt. To fund the war against Britain, the government doubled the rates of its major source of revenue, customs duties on imports, which obstructed trade and ended up yielding less revenue than the previous lower rates. At the height of the war, excise taxes were imposed on goods and commodities, housing, slaves and land were taxed. Finally when the war ended in 1816, these taxes were abolished. A high tariff was then passed to retire the accumulated war debt. Thankfully, the notion of an income tax was conquered (Young, 2004). However, the thought of the income tax reappeared as an idea to fund the Union armies in the war to prevent the secession of the Confederacy. The war was expensive, costing on average $1,750,000 a day. Struggling to meet these expenses, the Republican Congress borrowed heavily, doubled tariff rates, sold off public lands, imposed a maze of licensing fees, increased old excise tax rates and created new excise taxes. But none of this was enough to fund the debt (Young, 2004)..

Many states view collecting use tax on smaller purchases as burdensome, therefore states have customarily attempted to collect a use tax only on big-ticket items that require licenses—such as cars and boats. Many states over the last several years are increasing enforcement efforts of the use tax laws to get the state population to pay the taxes due in an attempt to combat internet ordering. The realities of limited resources as well as the complexities involved with tracking down minor purchases and demanding that a use tax be paid are limiting the collection efforts.

The governments in any country use various taxation systems to raise funds to fund its national projects. The most common tax system is the income tax whereby the government raises funds from individual’s earnings. However, in the past few years, there has been heated debate about the adverse effects of progressive income tax on productivity and a proposal to replace it with national sales tax (Hodge, 2017). The national sales tax also known as the fair tax is intended to replace the current income tax and the idea is to enable the government to generate income from consumptions as opposed to earnings. This document examines the positives and negatives of the proposed national sales tax on the U.S. economy. The suggestion to impose a tax on consumption rather than consumption aims at encouraging savings and investments to improve productivity and promote economic growth. It is expected to promote fairness in the taxation because individuals will pay according to what they consume and not what they earn.

Our current income tax system today is very complex, unfair, inhibits saving, investment and job creation, imposes a heavy burden on families, and weakens the integrity of the democratic process. It can't be fixed and must be replaced. The U.S. income tax code is a long and complex system. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms. The IRS sends out eight billion pages of forms and instructions each year. The administrative costs of the tax system far exceed those borne directly by the IRS. Each year Americans devote 5.4 billion hours complying with the tax code, which is more time than it takes to build every car, truck, and van produced in the U.S.

The national sales tax would replace our current income tax system by taxing goods and services. Under this system of taxation, people would pay taxes on every item purchased and not on income. This would help the economy through sales. "There would no longer be an inheritance tax or a capital gains tax. The government would impose a 17.65 percent tax on the value of all final sales to consumers. To protect lower-income citizens, the government would send all households periodic rebate checks, the net effect of which would be to offset the tax burden on purchase up to the poverty level" (Mitchell 2). This national sales tax is a popular

Yes, an income tax taxes a person who makes more money a higher amount that a person who makes less which makes it seem fair, but is it really? Let’s take a look at who is actually taxed with an Income Tax versus a Sales Tax. With an income tax the only people who are being taxed are the people who legally have an income. A sales tax taxes everyone who buys things. There is a lot of people who have found ways to slip through the cracks and get paid an under the table or off the books. By getting their income in this way, they avoid having to pay an income tax. Is it fair that they can make just as much money as someone who get their income legally, but not have to pay a penny in taxes on it? That is how a sales tax is more fair than an income

According to the following articles; "Retailers Pan Democrats' Proposal To Raise State Sales Tax" by Stephen singer, “The efficiency of market and the cost of Taxation” in Dirk Mateer and Lee Coppock’s, Principles of Macroeconomics 2nd ed.,"How Sales and Excise Taxes Work", "Most Americans live in States with Variable-Rate Gas Taxes", "How Long Has it Been Since Your State Raised its Gas Tax", and "Building a Better Gas Tax" from, www.itepnet.org and www.ctj.org, the authors informs the reader about the consequences the government's decision to increase gasoline prices and high state sales tax to fix transportation systems in Connecticut can have a negative impact on the lives of low income family. In Stephen singer’s article, Connecticut

Throughout history, taxation on United States citizens has proven to be a necessary component of a growing economy as means of generating revenue for the federal budget. The federal budget funds the many government programs implemented to keep the disabled, elderly, and unemployed from falling bellow the poverty level. Unfortunately, this fund is not always available when catastrophic evens, such as an economic recession, deplete the revenue coming in and create a budget deficit. In order to regenerate money coming in and replace the deficit, the government calls on money gained from taxes. What happens when tax money is already appropriated to other programs? A tax reform. A tax increase has many times been the

We have all heard the famous quote by Benjamin Franklin who stated, “In this world nothing can be said to be certain, except death and taxes.” (“Benjamin Franklin Quotes”) We find this to be true as we begin working and feel the pain of money being taken from our paychecks. Then we face the chore of having to file income taxes yearly. Although there are many taxes we are subject to, most people are referring to federal income tax when they complain about taxes. There has been debate for decades about the current system but there has been no agreement on how to fix it. The United States currently has a progressive tax code which means people pay taxes according to their earnings. This has been in place since the time of Abraham Lincoln. An alternative

Due to a third party now being involved sales tax naturally becomes more complicated. Even products that are normally tax exempt can find themselves liable for sales tax. This is because, while drop shipping purchases are meant to be tax exempt, nexus comes into play with out of state consumers, suppliers, or retailers. Nexus will often impact how sales tax rules apply to a sale.

Rule 1: It is a common misconception that Duty Free shops in airports and train stations always have the lowest prices. Duty free shops may not have to pay duty taxes, but that doesn 't mean that they don 't have a profit markup, and manytimes this markup equals or exceeds the duty. For example, at Miami Airport 's duty free shops, cigarattes cost more that in the average midwestern Quik Trip store. When cigarettes were about $14 locally, the Dallas