Our family favors tax reform, but, state and local taxes set us back every year much more than the federal income tax. State income taxes, property taxes and inventory tax really hurt us as small business owners. I think the fair tax is a logical first step but wonder what are the implications for state and local taxes.
Ann
It depends on what rate is selected for the National Sales Tax, or Flat Tax, but for me, it is not the worst thing that could happen if the selected rate nationally DID put more pressure on state and local taxes, the federal influence would be reduced, and state control of our fiscal destiny enhanced. Hopefully, water would seek its level, and we wouldn't end up exchanging one burden for another.
The problem we have now is the feds are taking so much from our populace, individuals and businesses, that any increases on the state level have to be fought tooth and nail.
We have no choice but to tax of course, for me, federal taxes bad, state and local taxes good. Income taxes bad, sales taxes good. The reason we HAVE property taxes is the locals had no other place to go because the feds had squeezed the proverbial blood out of the turnip, IMHO.