Subject: Tax Reform
Comment: I believe that we should institute a nation sales tax or VAT. Then, scrap almost all of the other various federal taxes (Corporate income and customs duties/fees would continue to be collected). Wage earners below a living wage (Determined by the government annually and adjusted on a state-by-state basis) would be entitled to a monthly rebate in the amount necessary to bring their monthly income up to the living wage level.
I feel this concept offers several distinct advantages:
By scrapping almost all existing taxes, the reduction in administrative cost to the federal government would be tremendous. Of course there will be issue of redundant federal employees. I think that there should be a transitional period while the existing tax code is being phased out. Reduction in the federal workforce would be by attrition, not any layoffs.
No more income tax evasion. You buy something, the tax is paid. Transaction complete.
No more laborious record keeping and volumes of paperwork needed to try and comply with the current tax laws.
No more social engineering via the tax code.
The higher wage earners contribute more since they tend to buy more and higher priced items. This would be the end of the current class warfare mentality which incessantly pits the haves against the have nots. Everyone contributes.
If the rate is adjusted annually based upon the federal budget, there would be little or no deficit spending
Thank you for the opportunity to provide my viewpoint.