A friend of mine threw me this idea, and it's completely water-tight, as far as I can tell. (Which, I admit, is not too far.) However, we talked about
it for some time, and it just made more and more sense.
I will leave the mathematical figuring up to you. However, consider these two points for starters:
Immigrants under this current method may come to our country, take out a loan, and open a business. They can run this business for about five years,
dodge their income taxes for about five years and simply pass the business onto a family member to run it the next five years. Under this new proposed
structure they would have no loophole to hide in.
Secondly, consider the high-end drug dealers operating in the US. Of course, they aren't paying any taxes on THEIR wares. All that money is drained
directly out of the economy. Now, under my friend's idea... those drug dealers wouldn't be paying income tax, but you can BET they'll have to pay
their sales tax on those Escalades, boats, jewelery, homes, etc etc...
That is just the tip of the iceberg.
Point is: Eliminate income tax, and create a 25% National Sales Tax, and the economy will improve dramatically. I challenge you to show me the math
which will disprove this...
****PLEASE NOTE: This idea would be contingent on items deemed "necessities" to be exempt from sales tax. This includes food, clothing, hygiene
(Admin: feel free to relocate this thread)
edit on 3-3-2012 by Aqualung2012 because: .
edit on 3-3-2012 by Aqualung2012
because: (no reason given)
edit on 3-3-2012 by Aqualung2012 because: (no reason given)