[JennysCool]

My best guess is you would simply add a penny or two cents to what your state charges as the Fed's share. That's another reason why moving to a national sales tax would be a fairly easy changeover -- the infrastructure is already there.

[willyd]

A penny or two?...no try 23 pennys per dollar. That makes your real tax rate around 30% assuming you have a state sales tax.

[JohnD9207]

The best part is the 20% wage increase for everyone. And don't forget all of the people who pay no tax now would be taxed. Cocaine dealers pay no income tax but buy plenty of gold chains, tv sets, and cars. If I choose to save money rather than buy more crap...then no tax will be owed. Putting Tax lawyers, and the IRS out of business would be too much for my old heart to handle.

When you consider the average American's lack of desire to save money, and shop until they drop attitude, the economy would take a huge jump in consumer spending e.g. JOBS. I know it isn't without its faults, but what other way does the Government have to collect taxes on wages paid under the table?

Great idea, but the crooks in Washington will never agree to it.