Why A National Sales Tax Is A Terrible Idea | What's Ahead

Amidst calls to massively reform or even eliminate the IRS, Steve Forbes explains why the oft-proposed "national sales tax" is not a solution.

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[camduran]

I remember this guy. He ran for president a long time ago. But about a flat NST, people need to also remember that under such a plan, organized crime would be paying their taxes for the first time ever. Same goes for drug dealers. Professional gamblers as well. Tourists would pay it (and no, it wouldn’t decrease tourism). Anyone in the U.S. — legally or not — would be taxed. There would be other benefits to an NST… I mentioned just a few. I believe it could work and it wouldn’t need to be anywhere 23%, in my opinion.

[FlipCouvillion]

The last thing this country needs is more tax dollars.

[wross]

National sales tax as long as they get rid of city, state, Federal taxes.

[michaelhennessey]

Why can't people be honest when discussing the fair tax? Whenever I hear someone say that the fair tax is 30%, that tells me that they either don''t know what they are talking about or they have some hidden agenda. If we calculate the fair tax the same way we calculate income tax, it is 23% not 30%. That is just one of the things this guy got wrong, or outright lied about.

[JP-rfpx]

Tax on fast food should be 50%. keep people healthier and reduce medical costs!

[icutoo]

I can see it now. Somebody has pent years of paying federal income taxes to save up for a car or a house and then those same dollars that were taxed will be taxed again for national sales tax. Can we have more taxes so they don't have any money at all and then subsidize them? Will sales taxes increase consumption and grow the economy?

[TrackSol]

Easy, make it only 15%, (5 local, 5 stater/territory, 5 federal);and applies to all sales new or used, private, commercial or B2B; with the only exemptions being groceries, utilities, kids clothes, school supplies, and first home.

[cmotoole]

Maybe a “progressive” sales tax? Food is exempt, Clothing 5%, Housing 10% (one-time only, no annual property tax). Abolish income tax at the federal level. Constitutional amendment to limit any and all forms of taxation to no more than 10%. Resize government accordingly.

[boomyahr]

DeSantis, meanwhile, voted for that legislation when he was in the House and co-sponsored the Fair Tax Act of 2015,

[redbarn]

Sounds like this guy is in favor of maintaining the status quo which is a platform of wealthy individuals and organizations lobbying congress for tax law benefits...

[zackman]

I recommend y'all find a different video to research sales tax. When researching tax systems know that all changes will be opposed by sources like Forbes. Especially Forbes. All the issues listed in this video have easy fixes. research states like Washington. They have a very successful sales tax system.

[TrueCapitalist]

First of all, We would also have to have an annual budget and get rid of property taxes and all other taxes. which is great. And unless you've incorporated yourself, you are paying 40% of your income off top. You would pay 23 to 30 cents to every dollar but have 40% more of your income. This would make people far more fiscally responsible and focus more on spending for needs than spending for wants. You are paying more and more for groceries, shelter, energy, utilites and at the pump on top of the taxes you probably never even heard of, with our current system So Besides doing other things to bring value to the dollar, ending all taxes in exchange for 23 to 30 cent for every dollar would lower cost, encourage fiscal responsibility, create a more competitive market with more economic opportunities since buisnessess won't have to cut it hender employment due to taxes and tax hikes. The minimum wage needs to be abolished as well. I couldn't imagine the wealth I would have with a National Sales Tax that abolished all other taxes. It would offset the 23 to 30% and with an annual budget, creates a surplus where the American people can demand the national sales taxes be decreased years by year . .

[johngalt]

I remember when he advocated a Flat Tax on a postcard. I'm still waiting on that. A 9% flat tax in place of income tax would be great!!! It would replace our current system and force government to stick to a careful budget and stop wasting other peoples hard earned money.

[Bjorn]

= Tax on consumption.
You have the choice, taxing wages and labor, taxing debt- & deduction-induced (hyped capital) assets or more in consumption taxes.

One third of 🇺🇲 GDP is taxes, corporations pay little, all individuals short of 30% of respective income (total).

[ivanpadilla]

I’ll have to rewatch this a few times to get it.
First impressions: IRS will still be around to tax/audit businesses, not individuals. If you have less money you buy less stuff. Sounds to me like a fair tax, since people that avoid taxes through business would still pay through that sales tax.
W-2 employed people would not even have to file taxes since they already paid.🤷🏾‍♂️ i can see cash transactions being a pain…. But I’m for making it easier for people and less Gov control.

[TimothyOBrien]

He's the geneius who wants a flat income tax. That's the worst idea compared to the current tax system. And the tax on the house would only be on a NEW house. Used houses would not be taxed.

There's no new payment system needed. The social security system is already set up. You're throwing the baby out with the bathwater.