The idea is to tear up the federal income tax system, scrap it for good, and replace it with a national sales tax. Here’s how it would work, and why every citizen ought to give it serious thought.
The individual and corporate income tax, the capital gains tax, and the estate and gift taxes would all be eliminated. In their place, a new national sales tax (NST) of 15 percent would be charged on the final purchase of all goods and services at the retail level. There would be a universal rebate for every household that would in effect exempt all consumption up to the poverty level. Households with total expenditures at and below the poverty level would therefore receive a rebate for every penny they paid for the NST.
Under this new system, April 15 would once again be just another day. Americans would have already paid their federal tax burden at the cash register throughout the course of the year. As a result, individual taxpayers would no longer have to spend countless hours filling out forms–or pay accountants to do so. And they would no longer be required to reveal to the IRS the intimate details of how they earned and spent their money.
They would no longer have to live in fear of accidentally violating the letter of the incomprehensible U.S. income tax law and thereby incurring the wrath of the unforgiving IRS. The Internal Revenue Service’s abusive practice of conducting searches without a warrant and seizing assets without a trial would be brought to a screeching halt.