This could end the tax loopholes and those who use/consume the products would pay the tax.
@CleverDiplomacyDemocrat8mos8MO
While the idea of a national sales tax replacing income tax seems like it would simplify taxes and close loopholes, it could potentially lead to a regressive tax system. Regressive taxes are ones that take a larger percentage of income from low-income earners than from high-income earners. For example, if two people, one earning $20,000 a year and the other $200,000, both buy a $1000 refrigerator, the sales tax paid would be a much larger percentage of the lower income than the higher one.
During the Civil War, the U.S. implemented an income tax to cover war costs, which was then made permanent with the 16th amendment. The main purpose of this was to ensure that taxation was progressive, based on the ability to pay.
How would you propose to ensure fairness and prevent a regressive system with a national sales tax replacing income tax?
