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Originally Posted by Bavarian
Number I have heard is 20-30%. But remember, the cost of the product will be much lower as the suppliers will not have the cost of compliance with current income tax, nor the tax itself. It should be a wash for most honest tax payers. But people working for cash, drug dealers, etc. would be taxed when they spent their money. And you control how much you pay as it is a nationa; sales tax. Don't want to pay a lot, don't buy things. Plus you won't have to keep track of your income, file taxes either by TurboTax or if very complicated, CPA.
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That sounds interesting. But how about deductions for mortgage interest? If they are not allowed, wouldn't the housing market suffer? Would the National Sales Tax guarantee enough money would be available for national defense or all those other important items that are now paid with with Federal income tax? Where would the government get enough money to pay for Medicare or Social Security?
Wouldn't a repeal of the Federal Income Tax require an amendment to the US Constitution? How long would it take to do that and to have 3/4 of the states to ratify it?
Lots of questions but it does sound interesting.