Ways to Improve the Tax System: National Retail Sales Tax

This section explains a wide range of issues surrounding implementation of a national sales tax to replace one or more other federal taxes.

Description

• What is it?
• What would and would not be taxed?
• What would the tax rate be?
• Why wouldn’t the Rate be 23 Percent?
• What is the difference between a tax-exclusive and a tax-inclusive sales tax rate?

Issues and Concerns

• Who bears the burden?
• How much avoidance and evasion would there be?
• What would be the effect on economic growth?
• What transition rules would be needed?
• Would it simplify the tax code?
• What did the President’s Advisory Panel on Tax Reform say?
• What has been the state and local experience?
• What is the experience of other countries?