We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Replacing the income tax with a national sales tax - Research Paper Example

Comments (0) Cite this document
The current issue of great concern for stakeholders throughout the American society is with respect to updating and ultimately improving the current tax code. Many suggestions have come to light over the past several decades for the ways in which this could take place…
Download full paper
Replacing the income tax with a national sales tax
Read TextPreview

Extract of sample
Replacing the income tax with a national sales tax

Download file to see previous pages... As might be expected, one of the reasons for why a value added tax/sales tax/”fair tax” has not caught on within the United States is due to the fact that a preponderance of negative trade-offs exist with regards to implementing this. As a function of seeking to understand this issue to a more full and complete degree, the following analysis will present the reader with an understanding of the way in which a federal sales tax represents both positive and negative externalities and could ultimately harm many at risk individuals within the current society. Through such a level of argumentation, this particular researcher will seek to expound upon the complexities of a federal sales tax and the manner through which the trade-offs for this particular approach compare to the current income tax structure that currently exists. Although the analysis will most certainly go into a greater level of death concerning each of the pros and cons of a potential federal sales tax, figure 1.0 below helps to sustain sleep illustrate some of the key points that will be under discussion within this brief analysis. Figure 1.0 Trade-offs of a nation-wide federal sales tax structure     Pros levels the playing field between all tax payers   aids investments     benefits businesses     stimulates saving     eliminates IRS and the headache of "filing taxes"     Cons     disproportionate impact upon the elderly   disproportionate impact upon the poor     lack of deductions for expenses     depends too much on spending     increases potential for tax evasion   As can be seen, the main benefits that a federally mandated sales tax could incur would most certainly be with regards to leveling the playing field between all taxpayers within the system. The current system is one that places an undue level of stress upon certain individuals within society while others do not have any tax burden whatsoever (Jones 6). As such, a federally mandated sales tax would be a system that would invariably change this dynamic and ensure that each individual who participate in the economy would be a same rate. Another added benefit is with regards to the fact that a nationally mandated sales tax would in fact serve to increase investment. Due to the fact that investments themselves and savings would not be taxed, individuals would come to the realization that a heavy national sales tax burden would encourage them to save their money rather than spend it. By much the same token, a direct level of benefit would be with regards to businesses as they would no longer have the headache of engaging with the Internal Revenue Service and providing certain levels of withholdings (Ling & Petrova 371). Furthermore, it can also be understood that eliminating a federal income tax would also have the added benefit of doing away with an incredibly costly and inefficient Internal Revenue Service; a branch of the government that is recently come under a great deal of scrutiny recently for its unjust, unethical, and illogical political torment of those that have alternative views to the current administration. However, it must not be understood that simply eliminating the income tax is going to be a solution that invariably benefits each and every participant within the economy. For instance, the first and most salient concern is with regards t ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Replacing the income tax with a national sales tax Research Paper”, n.d.)
Retrieved de https://studentshare.org/history/1496705-replacing-the-income-tax-with-a-national-sales-tax
(Replacing the Income Tax With a National Sales Tax Research Paper)
“Replacing the Income Tax With a National Sales Tax Research Paper”, n.d. https://studentshare.org/history/1496705-replacing-the-income-tax-with-a-national-sales-tax.
  • Cited: 0 times
Comments (0)
Click to create a comment
Does the General Sales Tax Impact the Personal Consumption Expenditure
Taxes are imposed on goods; fines are levied on businesses by the local authorities and all employees pay taxes on a scheme commonly known as Pay as You Earn. Failure to pay such taxes attracts a penalty that is paid in the form of a fine. Sales tax is the commonly known tax and it is imposed on goods mostly sold by the retailer to the consumer.
9 Pages(2250 words)Research Paper
Individual income tax. USA Indiana state laws
She has set a section of her home, one-half of one of her rooms, which therefore is exclusively for her to work. The taxpayer has installed a swimming pool in her rural home in Indiana. Following a recent car accident, the doctor recommended that she use the pool to aid n the process of healing by strengthening her muscles.
6 Pages(1500 words)Research Paper
National Sales Tax
One flat tax rate along with a rebate tied to the poverty line would replace the progressive system of taxation that businesses and individuals alike have to pay into. There are compelling arguments for and against the NST. The most compelling side is the side against the NST.
10 Pages(2500 words)Essay
Fairtax (fairtax.org)
Since its introduction, FairTax of 2007, a retail sales tax, has been considered the most promising tax reform in the US history. The FairTax proposal replaces the existing federal personal income, corporate income, estate and gift,
20 Pages(5000 words)Research Paper
Tax Research
three issues: first, the house was destroyed in taxable year 2009; second, the house was destroyed by a natural disaster: third, the insurance company doe not cover for damages or destruction caused by natural disaster. Section 165(a) provides that, in computing taxable income
2 Pages(500 words)Research Paper
Personal Income Tax and Revenue Forecasting
The pattern as shown in the past three year’s revenue collection reveals that revenue amount rises each month from the previous month in a large portion of the fiscal year. Also, the revenue collection pattern shows a trend of
5 Pages(1250 words)Research Paper
Tax Research
rease of taxes on the wealthiest, through raising the rates on the capital gains together with dividends for rich, Romney plans to decrease all tax rates. Moreover, Obama seeks to reform the corporate tax code, but on the other hand Romney claims that he will slash the corporate
2 Pages(500 words)Research Paper
Individual Income Taxes - Tax-Deductible Losses
Under the current tax laws, a casualty loss deduction is allowed if the extent of the loss is not reimbursed by insurance. Tax-deductible losses are reasonable because they give evidence of closed and completed transactions. A tax deductible loss
6 Pages(1500 words)Research Paper
Corporate Income Taxes - Reorganizations and Consolidated Tax Returns
His situation remains in place as long as the interest test’s continuity is achieved. This property can be in terms of money or other assets. The type A reorganization also eliminates the
5 Pages(1250 words)Research Paper
Corporate Income Taxes - Tax-Planning Client Letter on Irrevocable Trusts, Gift Tax, and Estate Tax
This implies that my client (the grantor) seizes to have any control over the property as he has effectively removed his rights of ownership to the trust and the assets. My client is likely to have crucial benefits when he establishes the irrevocable trust.
2 Pages(500 words)Research Paper
Let us find you another Research Paper on topic Replacing the income tax with a national sales tax for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us