The IRS and Federal Income Tax

[Flaptail]

First off if you have ever had to deal with the IRS because of back taxes, or, as in my case once, my accountant missed a form, you know how ruthless they can be. They will use every tactic to terrorize you into paying when actually they cannot legally do what they threaten to do.

Anyway, they suck, so....in this time of turmoil and change why not sack the IRS and go to a national sales tax instead? A "value added tax" with varying percentages for items ranging from your personal jet to the pair of Air Jordans you just saw on TV?

This would work. The IRS knows it and so does the goverment. Ex IRS employees (one, who was chief fraud investigator and instructor for the entire east coast and who happens to do my taxes) say it would be the most efficient means of collecting revenue and save billions in the reporting end for the govt.

Of course Taxmasters and H&R Block would have to find new venues of business.

Just a thought.

[RIJIMMY]

Flap, my only thought would be that this would create an incredible black market for goods.
With the internet today, people would be able to buy most high end goods overseas and avoid the tax. Mexico and Canada would have a huge boom in their retail sector. In the end, I think this would punish the retail stores, their suppliers and employees.

I'd like to see just a flat tax, across the board, no exemptions, one form, with 3 lines, your income, your tax and how much you owe.

[Nebe]

The system works just fine the way it is. Having a huge sales tax would totally stifle our economy which is a consumer based economy. Plus, the government would not want to entrust its income by allowing every business in America to be its tax collectors.

[Joe]

National income tax would be great for everyone who has already bought most of their durable goods - but it would screw young people just starting out.

A flat tax with no exemptions would mean no charitable deductions, which would harm foundations, museums, university endowments, soup kitchens, little leagues, etc. It would further erode our institutions.

[PaulS]

Having a flat tax with no exemptions would put huge hardships on our poor.

[fishbones]

Originally Posted by Joe

National income tax would be great for everyone who has already bought most of their durable goods - but it would screw young people just starting out.

A flat tax with no exemptions would mean no charitable deductions, which would harm foundations, museums, university endowments, soup kitchens, little leagues, etc. It would further erode our institutions.

Joe, didn't they change the rules regarding claiming charitable deductions last year? I know I wasn't able to claim much and I donated more last year than in any previous year.

[Joe]

I did not hear anything about the allowance for charitable deductions being decreased from my accountant.