Should the federal government repeal the personal income tax and replace it with a national sales tax?
Should the federal government repeal the personal income tax and replace it with a national sales tax? Some have suggested that Congress repeal the regular individual income tax and instead make a national sales tax on individuals. This idea to replace the income tax with a national sales tax is not a new one.Proponents claim that the national sales tax applies a lower, nearly flat rate to a broader base and therefore would raise revenue more efficiently than the regular income tax. Federal sales taxes are widely used in other countries around the world, and given the low tax burden compared to Canada and Europe it is at least plausible that the federal government could obtain enough revenue from a sales tax in order to completely replace federal income taxes (Moffatt). If a national sales tax is made who will benefit the most, will there be a change on consumer spending and the economy and is the scheme even possible.
Moffatt, Mike (2013). Fair Tax –Income Tax vs. Sales Tax. The Fair Tax proposal. Retrieved April 22, 2013 from http://economics.about.com/cs/taxpolicy/a/fairtax.htm
I did the first paragraph and have 1 reference all you have to do is add to it. Paper must be 10 pages. Remember No plagiarism.