TJ, You and a LOT of other folks like this idea and/or a national sales tax. But, the problem as I see it is that the tax on any given item IS "the same for all parties". This makes the tax burden on a $1.00 candy bar the same for me as for Perot and Gates. It also makes the tax burden on a $30,000 dollar car the same for me as Perot and Gates, making just the taxes alone prohibitive from me acquiring the car. Let alone the price of the car. IMHO, A true flat tax based on income with NO exemptions and/or deductions {except possibly the first ten thousand from ALL taxpayers equally} would be the fairest and most equitable form of taxation.
Along with getting rid of paying godgov rent on that which we already own in the form of property taxes, and all other taxes would allow for the equal opportunity of movement up and/or down the economic ladder based on competence and initiative alone {with a little luck either way}. Allowing for rich sluggards to become paupers and energetic poor folks to become rich with equal opportunity. Just my dream. Peace and love, George.
The idea for the tariff belongs to the founders, not me. The idea of a "flat" tariff, being the same for all countries, belongs to me although I'm sure I'm not the originator of it. It removes mischief from the government activities.
The idea for a national sales tax to replace an income tax belongs to others, not me. I never advocated it. The relative merits of that proposal are for debate on a different thread.
The idea that a direct tax on individuals was bad and was to be avoided belongs to the founders also. They were correct in my opinion. The income tax and it's attendant problems and government intrusion was one of the single worst policies to be foisted on the american people.
But, the problem as I see it is that the tax on any given item IS "the same for all parties". This makes the tax burden on a $1.00 candy bar the same for me as for Perot and Gates. It also makes the tax burden on a $30,000 dollar car the same for me as Perot and Gates,
Gee George, it sounds like you are trying to make the case for the graduated income tax even though you just proposed a flat tax. That particular evil idea is the construct of communists, it can be found in their manifesto. Envy is a terrible thing George.
A true flat tax on individuals would take the total cost of government and devide it by the number of citizens and send them all a bill.
This is the same argument as from the IRS propaganda-for-kids page, and it's flawed.
Your average billionaire probably won't be buying that $30,000 car -- he'll be buying a $150,000 car or a $50,000,000 jet. How much tax did you pay on your ~$80,000 home? How much did BillG pay on his $65,000,000+ home? His property taxes alone for the first year were close to $600,000.
On a more down-to-earth level, I believe the IRS used the example both rich and poor taxed the same on a cheap tire. Poor average guy, he paid a bigger percentage of his income on taxes when buying that tire. However the truth is that the average guy will buy a $50 tire for his Neon, but the Porsche driver will be paying over $300 for a Pirelli PZero that will last for half as many miles.
The sales tax may or may not be great for the economy depending on what economic school you're in: it'll encourage saving and discourage spending.