Why doesn't anyone push for a national sales tax? If we abolish the income tax and amend the constitution so

Politically this will most likely never happen. There's too much money and power against it. It's too perfect of a solution for many of today's problems.

The primary reason the economy has been struggling by the end of most Republican administrations from Nixon on has been their continual emphasis on shifting the tax burden toward regressive taxes.

The closer to a hand-to-mouth existence somebody lives, the more stimulus the economy gets if that person gets more money, because they'll spend it. And they'll spend a lot of it on low-overhead items like food and clothing, with a stronger-than-average leaning toward low-priced, marginal businesses where the owners also recirculate the money as soon as they get it.

The fact that the current botched-up economy was supposed to be helped by tax-rebate checks is proof that, when the chips are down, everyone knows this.

However, except for minor fluctuations like this stimulus rebate, the tax system at the federal level and in most states continues to be shifted to put a higher proportional burden on those at the bottom of the scale in income and wealth. The income tax, which was the most progressive element, has been greatly reduced at the upper levels.

Meanwhile, regressive taxes continue to rise. Except for the Clinton administration, every one from Reagan on has increased the deficit spending and borrowed FICA taxes to pay for it, with no plan to repay the loans; the result is that the most regressive tax in the whole set (the less you earn, the more it takes) is supporting tax breaks for high-income people.

A sales tax is a regressive tax, and will hurt the economy. Those who have a lot of money don't need to spend it all and can avoid the tax; those who have less need to spend a higher proportion and will be hit harder.

The thing about taxes is that every tax hits some people harder than others. The best way to get a fair system is to have a whole lot of different taxes which spread their disproportionate burdens across the spectrum. Simplifying to one tax is guaranteed to be "picking on" some people at the expense of others.

We have been using the federal tax system to concentrate wealth in the hands of fewer and fewer people for over two and a half decades. No wonder the economy struggles!

The problem comes with the disparity in spending as a percentage of income. Those at lower incomes spend more of their income, by percentage, than those who make more and can thus invest and save. A national sales tax will then make lower income households pay a disproportionate share, and give them that much less to be able to save or invest. Your statement that if you don't make much you don't spend much is only true when you compare someone spending money on gas and groceries for the week compared to someone who might go out and buy a diamond necklace or a race horse every so often. While the wealthy person is spending more, they are spending a much smaller percentage of the money they have.

Some BIG problems:

If you don't make a lot of money you spend ALL of it and pay a much higher percentage of your income in sales tax than someone who make a lot more than they can spend.

People who earn the most pay no tax on the majority of their income. That is plainly not FAIR.

Another problem is that taxing spending would have a negative effect on spending during bad economic times when you want to stimulate spending.

um our income taxes do not go to pay for our streets , schools or anything that actually has to do with everyday life .Goes to the goverment for what ever they want it to go on .

That's what I have wanted for decades.. it is the only fair system, but the U.S. I.R.S Mafia will never let it happen

I am all for it. Now, you just have to find a politician with the balls to push it through - there's the problem :)

if it wold work as you say not bad,but the government wold screw it up like every thing else.

good point