Monday, September 8, 2014

Taxes: Part 1 - National Sales Tax

While there are certainly some people that hate all taxes, I accept taxes as something you need to operate a nation. I'd guess that taxes 'as a concept' don't bother people as much as the implementation, especially:
1) The crazy complicated method we have of calculating taxes
2) The crazy stuff the tax money is spent on

But taxes aren't only for collecting revenue - they also can be used to influence behavior. Because citizens/corporations will try to avoid paying taxes - and they'll try hard!

We're running a deficit big time. Not fair at all to the younger generations. And we probably can't make ends meet just by cutting spending. We need more revenue. Here my first suggestion:
Add a national sales tax

Not much - no more than 3%. And exempt, food, clothing, shelter - all the necessities. In general, sales taxes are regressive, so it shouldn't be too high. This will increase revenues, and is easy to collect since retail operations are already set up to deal with state sales taxes.

But here's the twist on it that could have some influence:
• If a company has it's headquarters and manufacturing in the US (and pays it's corporate taxes) then their products are sales tax free.

This might stem the tide of corporate inversions, and actually get some manufacturing jobs back into the US...

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