Well, keep in mind that per my original post I am not of the opinion that you can slice and dice "classes" of income in order to tax them separately - 50k is 50k regardless of investment versus wage income.Originally posted by: Craig234
Those figures were not income. They were capital gains. Most people's income is from wages and subject to the income tax on wages. The 'federal sales tax' is a joke, IMO.
I'd be interested in why you think the 'federal sales tax' is a joke - normally you offer relatively complex responses so I find this "x is a joke" and run response surprising.
In my opinion and observation, a federal sales tax replacing all other federal taxes has the following benefits:
Vastly easier to administer than tiered income / deduction system of today, reducing the need for a significant government organization (the IRS) which means lower administrative overhead and better use of tax dollars.
Collection method already exists in most POS / business systems based on the proven and successful state sales tax model that's been used for years in this country.
Exclusion methods also already exist in sales tax software to support states like MN that do NOT tax "essential" items like food and clothing and certain household goods which should remove the "sting" from low income earners who do not pay taxes under the current system.
Elimination of corporate tax (which would presumably be made up for in the overall federal sales tax to cover the shortfall) would result in lower costs and lower prices to consumers and business on goods/services purchased.
"Fairly" lumps the greatest tax burden on those with the greatest means who spend the most money. Allows individuals to grow wealth tax free and then pay-in when investment income is spent on other investments or goods.