Posted: Apr 26, 2005 By: Ted

Comment: Dear Sir:


There seems to be many reasons on both sides to agree or disagree on a NST, but a few important ones seem to
be excluded from the discussions which is a disservice to the country.

In Washington Post on 4/12/05 a tax article did not do much to endorse the national sales tax alternative, NST.

The writer and most all others who talk to this subject always fail to include some key critical information in the alternatives.
Here is your chance to be one of the first on your block to address these areas as good for a NST.

1. Presently, the underground economy is estimated at $500+BILLION yearly which of course, is not taxed. This includes illegal activities and drug trade activities. Ironically, it is the drugies who use/exploit the services that they now do not pay for. With a NST, these guys pay into the pot every time they spend and their main goal in life is to get money and spend it.

2.. Because of the now complex code, there are legitimate people/businesses who by error or just confusion, under report income. IRS Commissioner just estimated this at $3-400BILLION in lost federal taxes.

If you were to include these additional revenue sources, you would see that most people in long run would pay total less taxes since now these guys would contribute. Must be true intuitively, since you now have this additional chunk of money going into the pot.

Also, some give the [typically a major attack against a NST with only emotional value] argument that 'poor low income people will suffer more', which is invalid since these people would be exempt and get a refund for the tax that they pay so for them it is a zero sum game. Analytically, this argument against NST has no value.

Respectfully,

Ted