Goldouzian.com

Archive for January, 2011

The individuals of the US and therefore their elected representatives are currently observing 2 choices to switch the present tax system: Flat Income Tax and National Sales Tax.

Flat Income Tax represents a modification of the present tax system, where National Sales Tax represents a whole re-architecture of the whole tax system.

National Sales Tax Would Improve Trade Deficit

Our 2 corporations are Charlie Company and Alpha Company. Alpha Company manufactures widgets in their plant in Plano, TX. Now let’s scrutinize the results of a National Sales Tax on international trade.

Once again, we’ll state that a widget prices Alpha Company $100 to provide. When John decides to shop for a widget, he’s taxed a similar National Sales Tax — notwithstanding that widget he buys. This permits Alpha Company to compete on a fair level with Charlie Company.

Moreover, when Chon decides to shop for a widget, he doesn’t pay our National Sales Tax for the widget. The Income Tax Discourages Working; The National Sales Tax Encourages Saving

The Income Tax effectively punishes individuals for operating. The National Sales Tax, on the opposite hand, punishes Americans once they pay cash. Investment Capital.

Objections to the National Sales Tax

The National Sales Tax is regressive. In many countries that currently collect sales tax, basic things are exempted from sales tax. Forty-five states are currently collecting state sales taxes. Organizations to gather the National Sales Tax ought to be in-built solely 5 states.

Switching to a National Sales Tax would need a repealing of the sixteenth change.