I believe this would be an increase in taxes, because all people working illegaly would now be paying taxes, & the goverment could do away with personal income tax filing and only business would need to file. No more fed tax with held from your paychecks.
4 Comments Already
July 20th, 2011 @12:00 am
There are many problems with a national sales tax.
You would be replacing “under table work” with “huge underground black market”.
July 20th, 2011 @12:04 am
The federal income tax laws are also a tool to fight organized crime.
Al Capone was never busted for murder, but he did 11 years for tax evasion.
Drug cartels have been hurt by having hundreds of thousands in cash seized.
That’s why the govt will never get rid of the income tax.
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July 22nd, 2011 @5:31 pm
Lousy idea. To raise the same revenue it would need to be levied at 30% or higher. Do you have $6,000 lying around to pay the tax on a new $20,000 car? Or how about $60,000 for a new $200,000 home? You think the auto and construction industries are in trouble now? That would pretty much cause their total collapse.
The cost of fighting the black marketing activity that such a high tax would trigger would easily negate any benefit that simplified compliance would garner.