Dumb ideas like to resurface from time to time for dull, greedy people to masturbate verbally. The current Republican plan is to eliminate the IRS, income taxes, and payroll taxes and then institute a very large sales tax. I am a tax expert and that could work for a quick minute and then those same greedy ass people who evade taxes now would figure out how to evade/avoid paying the sales taxes too. Sure, they would take them out of the customer but never pay them into the WHAT? if there is no IRS that will monitor the tax collection game. Some private companies owned by Senator Billie Bob’s brother-in-law?
And what effect will this have on taxpayers? The vast majority of people who earn less than $100,000 spend every last dime and often more than they have. So they will suddenly be paying this large tax on their entire income because people at the bottom need a lot of stuff.
Versus people who already have a lot of money and stuff. They can afford to put money in the bank therefore they will pay much lower taxes than they do now.
The best replacement for the income tax is the Value Added Tax- that is what manufacturers pay at each step of production. It is used successfully around the world. Now the employment taxes are another story- because if people are not paying into Social Security (their pension plan) beats me how to make them do it with no verifications.