What was the main drawback of a national sales tax?

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Verdie O&#039;Kon · Accepted Answer

A properly executed sales tax is not regressive at all. First of all, you need to get rid of the income tax, or you will be double taxing. One tax is enough. Then the sales tax needs to be set up so that necessities are excluded - no tax on food, clothing, housing. In that way, those who can not afford anything beyond their immediate needs pay no taxes, and those that can afford more luxuries do pay the taxes. That's a progressive tax.As far as redistribution..... why? Set it up so that the States/Municipalities keep a portion of the tax and only that required to fund the Federal Government is went off to Washington. Very limited or no 'redistibution'.

Verdie O&#039;Kon · Answer

Higher populations in some states and lower populations in other states would mean an imbalance of how the money is re-distributed. There are already fights as to how government money is spent collected from income and business taxes. A national sales tax would be just one more way for the government to collect money from the people and spend it wrong. It also has to do with a "double-tax" or taxing the people twice, once through income tax and again through a national sales tax. A national sales tax was considered to be taxing the people twice.

Verdie O&#039;Kon · Answer

It takes a larger percentage of poor peoples income than rich people incomes.

Verdie O&#039;Kon · Answer

It's a regressive tax that has a greater impact on the poor.

Bernhard White

What was the main drawback of a national sales tax?

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