What do you think self employed people have to do now? If I get a commission check, I need to set aside at least 30% now to pay self employement and federal and state income taxes. The incentive to evade is already there. That is why many people (not including me of course) exaggerate expenses or try to take cash. It will be harder to evade the sales tax than under our current system. I spend most of my money on utilities, food and cars. Am I going to go to some back ally to buy eggs and milk? How about electricity and gas - from someone's trunk in a parking lot? With big retailers doing most of the business, collection of sales taxes from thousands will be easier than collecting income tax from millions.
Yes.
You don't think that some buyers and sellers will split the differnce of a 30% sales tax? That means increased profit for the seller and reduced cost for the buyer!
With big retailers doing most of the business, collection of sales taxes from thousands will be easier than collecting income tax from millions.Taking it from every worker's pay before it's ever seen is more difficult than returns from retail sales?
Relatively speaking, withholding from millions of paychecks is actually done by thousands....