I have advocated this for a long time as an alternate to the odious progressive income tax. I like it because it would be a true flat tax instead of the "flat" taxes proposed by some politicians. They always start out with three different "flat" taxes based on income and then all of these exceptions. Huh? How is that not a progressive tax?
A national sales tax however would be trully flat. You'd pay what everyone else paid. The argument could be made that "richer" people would pay more because they buy more but no one has to buy anything over and beyond the necessities. And, as in most states taxes the necessities such as unprepared food, medicine and other staples probably would be exempted. The IRS would need a handful of the people it has now. There would be no surcharge for the invented expense of tax preparation, tax lawyers, tax accountants. Collection would be done by a single source in those places that now have sales taxes. We would even be subsidizing less people because we wouldn't be housing so many tax evaders in prisons at 5-star hotel rates. There would be less cheating because the only opportunity to do so would be limited to person-to-person transactions and barter. People would be reminded daily of the cost of government since they would see this added to their bills everyday instead of the money surreptitously being siphoned off.
A downside is that those states that have no sales tax would now have one so that would be a burden for businesses in those places. There would also have to be some credit given for savings which were already taxed, but not spent, when the plan was initiated.
