Implementing a nationwide federal sales tax capped at 10% would exclude essential items such as vehicles, homes, stock trades, food, and medicine. The initial structure would allow the federal government to collect only the excess above 5% or the current sales tax (whichever is greater), in any state or municipality, specifically targeting areas with zero-5% current sales tax and online transactions. This ensures that states, counties, and municipalities continue to receive their current revenue.
The proposal would includes a phased implementation period of 5 to 10 years, aimed at gradually achieving the ultimate goal of a permanent allocation of 5% to the federal government and 5% to local entities, with a permanent 10% sales tax, cap nationwide. This approach would enhance compliance by collecting taxes at the point of sale.
Additionally, as the U.S. transitions to a Central Bank Digital Currency (CBDC), there is potential for a significant windfall of revenue as the underground economy becomes accountable. The increased visibility of transactions would facilitate more effective tax collection, ultimately benefiting both federal and state governments while ensuring a more equitable tax structure.
This is one way that we can immediately increase revenue to both states and the federal government without exceeding 10% sales tax or causing hardship to poor households.
We can use this 5% Federal Sales Tax Revenue to fund the Social Security Trust Fund, ensuring longterm sustainability and increasing the benefits of Social Security retired, disabled, and Veteran U.S. Citizens over 60 years of age .
This would allow immediate increase of two additional monthly payments to Social Security and disability beneficiaries.
It’s a noble aim to get everyone to pay their fair share. Though subjective as to what a fair share is. It’s my understanding a sales tax takes a larger share of income from those who earn the least in our society. I do believe there should be a point where those gaining the most in our economy can pay less in tax, however they already benefit too much from decades of political influence and “changing the rules of the Game” to avoid paying that “fair share”. A full time low wage earner who follows the law and pays taxes deserves a more just tax system. Lets step up enforcement eliminate government waste/pork spending. Just my thoughts.
If we exempt food and medicine, vehicles, houses, stock trades, And maybe allow local back to school exemptions it takes a considerable amount of the burden off the working poor. The point here is to pick up revenue that is not being collected immediately by imposing a 10% federal sales tax and allowing The federal government to enjoy revenue from sales taxes. This proposal does not attempt to replace income taxes and it puts a permanent cap nationwide on sales taxes at 10%. A phase in period allows state and local governments to continue enjoying their current revenues even in excess of 10%, with the ultimate goal of 5% going to Federal government, primarily benefitting the Social Security Trust Fund. The inevitable, digital currency will create a substantial windfall by bringing the underground economy to the surface. With a federal 5% sales tax in place, this would provide a tremendous amount of additional revenue to the federal government. Consumption taxes are the fairest taxes of all because if you don’t purchase anything, then you don’t have to pay. If you purchase a lot, you have to pay more proportionally. They’re all kinds of proposals for having consumption taxes far in excess of 10% and in some municipalities we already are exceeding that. In other areas, such as online or unincorporated areas, it is very low. This proposal makes sales taxes, consistent nationwide at 10%, collectible at the point of transaction and provides a fair amount to the federal government.
Keep in mind about 40% or better of US citizens don’t pay any federal income taxes. A 10% sales tax with proper exemptions is easy to calculate and easy to enforce.
If I am evaluating this number of 40%, they must consist of tax payers making $13850-$29200, or less, and the wealthy who have really gamed the system. My feeling is the Majority of these households are definitely living paycheck to paycheck. Not completely opposed to everyone having skin in the game on a level playing field. On the other hand, I think another sales tax would be troublesome. States currently enjoy a %10± sales tax (unless state income taxed). Are you proposing they go down to %5 at some point?
I would include clothing, child care, education costs. Perhaps some other staples like utilities, health care. I do like a simpler system but so far it seems too cut and dry. Undecided for now. Thanks
We need to stop asking how we can give the government more money, and concentrate on how to spend less. If the government has enough money to give to other countries then they are taking too much.