What would it take to get a nation sales tax instead of income tax?

Question

Seeing that the more money you spend, not earn, is taxed. Is better for both the rich and the poor? Luxury items could be taxed more and imported items would pay a duty? Do you think it could work?

Answer 1

It would take an extreme right wing agenda to accomplish this feat which would only help the very RICHEST of all Americans and the very poorest. Everyone else in the middle would be SQUEEZED to death. It would never work.  

Answer 2

well duty on imported items woudl have to be worked out with free trade agreements so there is an equitable duty between countries. ( part of the problem now in some situations )

some sort of consumption tax would be great in theory.  But the reason it wouldnt fly is the rich would end up paying alot more than they are now.  And im sure they dont want to.

Answer 3

This would be an excellent idea, however it would face much opposition, not by the upper class, but by Democrats and the lower class. As it is now, the bottom 20% of income earners in the US pay less than 1% of all income taxes collected. Democrats are always screaming about the injustice of tax cuts for the rich, but the truth is, the top 5% are paying about 49% of the country's income taxes.

Democrats hate the idea of a consumer-based tax because it gives responsibility to citizens. They love the idea that they can just withhold money from your paycheck without your permission and then give some beck to you at the end of the year when they have been overcharging you all year long. A consumer-based tax, like you suggest would empower citizens to make decisions, you know, think for themseleves, a concept HATED by democrats. It would allow us all to determine how much taxes we pay by the way we live our lifestyles, rather than by arbitrary brackets drawn by politicians.

Grant M: WHY SHOULD THERE BE TAX REBATES FOR LOW INCOME WORKERS?????? This will just feed an already existing problem of people beating the system. Many of these people will use these rebates to buy cars, video game consoles, manicures, etc.. Instead, how about instilling into the minds of everyone that responsibility will determine how much taxes you pay. Low Income workers have the exact same choices as the where they buy their groceries, clothes, etc. And just like everyone else, they may or may not make the choice to live beyond their means. The only difference is that they are more likely to live beyond their means.

So then why should the government punish the upper-class for their success by making them pay more taxes? Instead, the government should be focused on making sure taxes are resonable for EVERYONE. Perhaps the government needs to learn how to not live beyond its means. It does right now, and the lower class is benefitting from it while the upper class bears the burden.

Answer 4

Sales taxes favour the rich as they have the most choice as to how much and where they spend but with tax rebates on low income earners, it  can work well. Different levels of sales tax  and exemptions are a bad idea, as it increases compliance costs.

Most countries already have a tax levied on goods and services - these  are a better choice than a tax only at retail sales.