Let's kick this idea around for a while.  It's quietly brewing in some think tanks in Washington, both of the liberal and conservative persuasions.

Facts are:

1.  Deficit is mind boggling, and the bill will come due eventually.

2.  We alreday have some of the highest income tax rates in thE developed world.

3.  Most states have a sales tax.

4.  Most European countries, which are far more liberal leaning, have a value added tax, which in reality is a national sales tax.

The biggest argument against any sales tax is that it can be regressive, since people lower on the economic scale spend more of their total income on taxable items like clothing.  It's not really true, since historically food and shelter are not subject to sales taxes, but the regressive argument can easily be dealt with by providing a tax rebate to those whose incomes are below a certain level, such as the famous "federal poverty line".

The two biggest arguments in favor of sales taxes are:

1.  Impossible to get around - there are no loopholes, everyone pays; rich or poor, illegal working "off the books" someplace - if you buy a taxable item, you pay the tax, period.

2.  Costs very little to collect and enforce, unlike income taxes that need an army like the IRS to enforce and collect.  And it taxes consumption, not savings nor capital formation.

OK, what say ye?

The only National sales Tax plan I have seen that is the least bit appealing is "The Fair Tax"  proposed by  former Rep John Lindner and Neal Boortz. It is worth a look and discussion but ONLY if you read the entire proposal to understand how it works. During the waning days of the recent election only part of the concept was misused to demonize candidates who had given a nod to the bills consideration.
One appealing aspect is the concept of easy enforcement and  difficulty in getting around paying it.
Bringing in more revenue won't make any impact unless a serious commitment to reduce spending is made.
A lot of difficult choices lie ahead.

The dumbest thing in the world is the fair tax deal,With the fair tax the young family with kids and not making much money would be paying the taxes because sales tax, is the tax system on the fair tax deal,The older people if they don't spend much money want be paying much taxes.The United States got great the way the tax system has been,With Bill Chilton we were pretty much getting out of debt so why would you want to change that.

bill67 wrote on 12/13/10 at 15:22:49:

Have you read the book by the sponsors outlining how Fair Tax would work?
If so, why does the provision for exempting a base level of expenditure via a rebate for everyone (young, old or poor)not seem fair?

what's so hard about a progressive flat tax??   meaning, if you make this much then you pay this percentage period, no exemptions. keeping the percentages about the same as they are now or in Clinton years, I don't care which and then sign that into law that can only be changed every 25 years or so, not when the economy is down, not when the economy is up, take the variables out of the system, period.

it would unfairly punish the low income, more of their disposable income would go for taxes.  i prefer the voluntary tax  also know as the lottery. have a national lottery, if you don't want to be taxed don't play.   how bout that.

btw  what excatly does this thread have to do with motorcycles.  

remember the guidelines.  

Tax us all at 100%, we still cant get out from under the ODIOUS debt.

how much would a VAT add tot he cost of a Savage?