Replacing the income tax with a national sales tax Research Paper

Replacing the income tax with a bailiwick gross sales tax - enquiry Paper ExampleAs might be expected, one of the reasons for why a value added tax/sales tax/fair tax has not caught on inside the United States is due to the fact that a preponderance of negative trade-offs exist with regards to implementing this. As a function of seeking to understand this let go to a more full and complete degree, the following analysis will present the reader with an understanding of the way in which a federal sales tax represents both positive and negative externalities and could ultimately harm many at risk individuals within the up-to-date society. Through such a take aim of argumentation, this particular researcher will seek to expound upon the complexities of a federal sales tax and the manner through which the trade-offs for this particular approach compare to the true income tax structure that currently exists. Although the analysis will most certainly go into a greater level of death concerning each of the pros and cons of a potency federal sales tax, figure 1.0 below helps to sustain sleep illustrate some of the key points that will be under discussion within this apprize analysis. Figure 1.0 Trade-offs of a nation-wide federal sales tax structure Pros levels the playing field among all tax payers aids investments get aheads businesses stimulates saving eliminates IRS and the headache of register taxes Cons disproportionate impact upon the elderly disproportionate impact upon the poor lack of deductions for expenses depends too much on spending increases potential for tax evasion As can be seen, the main benefits that a federally mandated sales tax could incur would most certainly be with regards to leveling the playing field between all taxpayers within the system. The current system is one that places an undue level of stress upon certain individuals within society while others do not maintain any tax burden whatsoever (Jones 6). As such, a federally mandated sales tax would be a system that would invariably change this self-propelled and ensure that each individual who participate in the economy would be a same rate. Another added benefit is with regards to the fact that a nationally mandated sales tax would in fact serve to increase investment. Due to the fact that investments themselves and savings would not be taxed, individuals would come to the realization that a heavy national sales tax burden would encourage them to save their money rather than spend it. By much the same token, a direct level of benefit would be with regards to businesses as they would no longer have the headache of engaging with the Internal Revenue Service and providing certain levels of withholdings (Ling & Petrova 371). Furthermore, it can also be still that eliminating a federal income tax would also have the added benefit of doing away with an incredibly costly and inefficient Internal Revenue Service a subdivision of the gove rnment that is recently come under a great deal of scrutiny recently for its unjust, unethical, and illogical political torment of those that have alternative views to the current administration. However, it must not be understood that simply eliminating the income tax is going to be a solution that invariably benefits each and every participant within the economy. For instance, the first and most salient concern is with regards t