This subject came up briefly on CNN news today, and I only caught a piece of it, not enough to know what was being said. Looking it up on the web I found it was actually considered some time back, though it's the first I've heard of such a proposal. Wish I would have heard what was said today, whether it's being seriously considered for the US in the near future.
Life under a national sales tax - Mar. 15, 2005
Looking over some of the major components, it appears to have some good points and bad points as I would expect. Haven't really delved into it in enough detail to decide whether I'd consider it superior to the current taxing method, enough so to be worthwhile in making the switch.
Now this is where you can educate me a little on the international scale when it comes to govt. taxes. Do a large number of other countries have such a national sales tax on goods and services in place of a govt. (income)tax automatically taken out of your pay, and in which you have to file forms annually for reconciliation? Does the system work pretty well if it's used in your country? Is the VAT in the United Kingdom a national sales tax of some kind?
I remember buying a pram from an online retailer in the UK. Since I lived in the states she deducted the VAT, which was pre-figured into the prices shown on her website. That deduction saved me about $150 after converting from GBPs. People I know who have visited, and purchased items in the UK, paid the VAT, but got it credited back when they left the country. That's why I was assuming it was some type of national sales tax, but not sure if it completely replaced an income based tax.
Appreciate hearing from members in other countries that have national sales taxes in lieu of taxes based on income. Or even comments about whether you feel such a tax would work well in the US. I believe there was a thread about taxes a few months back discussing flat rate and other types of tax scales, but don't recall it touching on this particular tax proposal.