Winchester wrote:Why do you think a sales tax with compensating provisions to financially protect the working poor is better than an income tax with compensating provisions to financially protect the working poor?
Why not just go to a straight property tax, the more real property you own, the more you pay in taxes.
Winchester, Henry George’s concept of a single tax based upon land may have been more applicable to times when mining, timber, agriculture and ranching were of greater proportions of our nation’s economy.
Why would you believe that if our entire federal revenue were dependent upon the land tax, poor tenants would not need additional financial protection?
Computers make it feasible to for “a small basket” of various taxes not to materially increase aggregate tax overhead for administration and enforcement. There’s significant advantage to diversified sources of tax revenues.
Often when economic or commercial “cycles” reduce tax revenues from one source, other sources are less affected. This is similarly the case when revenues from one source increase significantly more than from other sources.
For the same reason, it’s more difficult for taxpayers to “game” a single tax rather than a few taxes funded by differing tax bases. Regardless of the tax method, taxpayers are tempted and some will attempt to legally avoid or illegally attempt to evade their tax obligations.
I believe dependence upon only a sales tax for federal tax revenue would require an unacceptable sales tax rate but even if it would be politically and economically feasible to do so, such great dependence upon a general sales tax is less preferable than also retaining other tax sources.
Our population’s individuals’ purchases and to a lesser extent our enterprises’ purchases proportional to their actual net incomes, more accurately than their income tax forms’ indications of their true net incomes.
But replacing any portion of income taxes with a sales tax would unjustifiably increase taxes upon the poor. To the extent that we shift any portions of our major tax revenue source from taxes based on net incomes to be replaced by a general sales tax, their must be provisions within and/or outside of our tax system for compensating the poor for their additional tax contributions, (i.e. for the sales taxes they will pay).