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The Time has Come for a National Sales Tax

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    The debate over a national sales tax has ebbed and flowed for some time, but I believe that the Federal government must pass one soon if we are going to stay financially solvent as a country as we move into the future. There are many reasons I believe we need a national sales tax, but the most important one is because the baby boomer generation is going to put a tremendous financial strain on the country if we don't.

    I know that many people will disagree with me, but I firmly believe that the best way to obtain revenue so our government can continue to fund the programs we have become so accustomed to is by instituting a national sales tax. A national sales tax would make it so everyone chips in and can't avoid paying their fair share.

    The exemptions to this hypothetical national sales tax would be on most food, diapers, prescription medicines, and other things our government thinks would cause an undue burden on the poor. I would also like to see luxury items like yachts, private planes and helicopters, and cars over a certain price taxed at a higher rate.

    If we don't do anything to address the near certain financial strain an aging population puts on the government then everyone, and I mean everyone, will pay the price for it. I think a national sales tax is a logical step we can take as a country to begin to address these problems.

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    Interesting points. I agree that the status quo is unsustainable and that we do need to begin thinking outside of the box.

    I've read some interesting pieces about replacing the income tax with a national sales tax, but I don't think that's the appropriate way to go. I think reducing the income tax and having a graduated national sales tax would be much better. I also agree there should be exemptions for certain products, especially those the poor and lower middle class spend the majority of their incomes on.

    Either way--I just don't see this happening anytime soon, but we have to begin the discussion about how we will address the pending shortfall of revenue as more and more baby boomers retire and become reliant on government programs to survive.

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    I don't have any problem with sense-able taxes. But I would much rather lobby for the government to just more efficiently spend all the tax money that it already receives, as opposed to just adding another tax for it to figure out how to spend. I think a majority of us feel we already pay plenty in federal income and sales taxes, not to mention road taxes, gas taxes, etc. Aren't we already paying enough?
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    bryce28 Wrote: I don't have any problem with sense-able taxes. But I would much rather lobby for the government to just more efficiently spend all the tax money that it already receives, as opposed to just adding another tax for it to figure out how to spend. I think a majority of us feel we already pay plenty in federal income and sales taxes, not to mention road taxes, gas taxes, etc. Aren't we already paying enough?

    "Aren't we already paying enough" is a question that can can never really be answered. The federal income tax is the lowest rate it has been in many decades, but there are mandatory expenditures like Medicare, Medicaid, Social Security, the VA, and various other programs have to be paid for whether we have the revenue or not.

    We can either raise the Federal Income Tax, figure out a way to tax offshore accounts, or institute a national sales tax. I'd love to hear other options, but I just don't see many other options.

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    JaredS Wrote:

    "Aren't we already paying enough" is a question that can can never really be answered. The federal income tax is the lowest rate it has been in many decades, but there are mandatory expenditures like Medicare, Medicaid, Social Security, the VA, and various other programs have to be paid for whether we have the revenue or not.

    We can either raise the Federal Income Tax, figure out a way to tax offshore accounts, or institute a national sales tax. I'd love to hear other options, but I just don't see many other options.

    My thinking is that the amount in taxes that people collectively already pay in should be enough to adequately finance the programs listed above. I think there is more mismanagement of fund allocation in federal government then makes anyone comfortable. And it doesn't give me confidence to answer that mismanagement with even more tax burden for all, to make up for incompetence.

    It is fair though to point out the lower rates of income tax, compared to other years. I wonder though, adjusting for inflation, are you saying that US citizens are collectively paying in less in taxes compared to the last several decades?

    If so, by what %?