National Sales Tax Replaces Income Tax
This page changed with the April 05, 2024 edit.
The Billionaire and the Beggar Pay the
Same Percentage
The Constitution of the United States of America, prohibits Congress from using either a census or an enumeration.
Here, we focus on a win win solution that funds constitutional government activity, as well as makes life simpler and less costly for the governed people.
Thus the simple flat percentage-rate-tax; but on what? The beggar's income is not easily recorded. The billionaire's income is easily hidden. The growing numbers of religions and other charitable tax-exempt organizations end up reducing the numbers of those who are required to pay taxes.
The government is supposed to work to equally protect and provide services to all persons, whether they own big or little businesses, religions, charities, or none of them. With this, we must find an easy, relatively painless way for all of them to pay their equal portion for the cost of Clean Honest Government.
The Constitution of the United States of America, Amendment 14, Section 1, states...
"nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws".
Taxation Equality
The income tax system is not evenly applied to all people based on the same type of income —therefore does not provide equal protection under the law.
Proposed alternate tax is a national sales tax. The benefit here, is that it is the same sales tax rate for the beggar and the billionaire. Both, the beggar and the billionaire, spend money; both do not always generate constitutionally taxable income.
A national sales tax also does not have to concern itself with whether or not rich people are hiding their money in foreign banks, or paying to themselves huge wages and bonuses; because they are spending, at least some of their money locally anyhow.
A fair, equal protection, tax requires three things:
A well informed population
Government officers willing to adhere to and not violate the terms of the contract, The Constitution of the United States of America, that they swear or affirm oath to support and defend against enemies foreign and domestic.
A well thought out taxation plan that applies equally to everyone.
Putting it all together.
When the billionaire, Warren Buffett, stated on national television, he pays less income tax than his secretary; the rich do not always pay a greater percentage of dollars on their income. This indicates that there are many loopholes that the richer portion of society use to reduce their actual tax burden; a burden, which then, is shouldered by the poorer citizens, such as the secretaries.
THE FAIR TAX
National Sales Tax
The National Sales Tax code can be written on a paper no larger than a standard business card, in the same size font used in this sentence.
The nation's government already tracks the national GDP (Gross Domestic Product). In addition, in order to create a budget of any sort, government officers must present a request for funds they will need for the next fiscal year.
Total Budget for the next year (divided by) Total GDP in dollars for the current year (equals) the national Sales Tax rate for the following year.
bea.gov Gross Domestic Product for 2023 "Current-dollar GDP [...] increased [...] in 2023 to a level of $27.36 trillion"[...]
cbo.gov Total Outlays: Down by 2 Percent in Fiscal Year 2023 "Outlays in fiscal year 2023 were $6.1 trillion [...] CBO estimates."
Supposedly, in 2023, the nation's GDP was a little more than 27 trillion dollars.
Supposedly, in 2023, the nation's government spent a little more than 6 trillion dollars.
Total Budget for the year 6 trillion dollars (divided by) Total GDP for the year of 27 trillion dollars (equals) the national Sales Tax rate for the following year of (0.2222222) 22.222%.
If those numbers are accurate; this would increase the total cost of products and services by 22%.
Fortunately, this does not take into account The Constitution's, Article 6, Paragraph 1; about how to reduce the nation's debt to manageable levels. With the change from The Articles of Confederation to The Constitution of the United States of America; they abolished all unconstitutional debt (debt not authorized by The Articles), by not honoring it under The Constitution.
Also fortunately, this does not take into account the closure of all unconstitutional offices and unconstitutional government operations.
The citizens are not obligated to pay any for debt that their representatives authorized in violation of The Constitution they swore to defend. That gets returned to those government officers, personally to settle.
Though people are likely to save more money and spend less: The Tax Rate is adjusted with the new budget and the previous year's results. People will continue to buy what they desire and need. If the people invest more, the gains from the investments should also increase what people spend, as it buys stuff to be taxed.
This does not rely upon a census or an enumeration. Rich people spend far more money than poorer people, thus each richer person pays a greater dollar value in taxes than each of the poorer people; —but, there are far more poorer people than richer. Now Warren Buffett can feel better that he will be paying an equal percentage but much greater dollar value of tax as a sales tax, than his secretary.
The greatest social benefit with this Fair Tax system created with Amendment 16 restrictions; it does not punish a person for trying to get ahead and join the ranks to the "better-off".
The FAIR TAX system detailed on this page eliminates nearly all the individual accounting paperwork and redirects that to far fewer entities, such as the businesses and other organizations (church, charitable, tax-exempt, etc.) as they all benefit from clean honest government, all should pay according to their use, by way of their spending.