Replacing the income tax with a national sales tax Research Paper

Replacing the income revenue enhancement with a discipline sales appraise - inquiry 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 position that a preponderance of negative trade-offs exist with regards to implementing this. As a function of seeking to understand this number to a more full and complete degree, the following analysis bequeath present the reader with an mind of the way in which a federal sales tax represents both positive and negative externalities and could lastly harm many at risk individuals within the genuine society. Through such a take of argumentation, this particular researcher go away seek to expound upon the complexities of a federal sales tax and the mien through which the trade-offs for this particular approach compare to the current income tax structure that currently exists. Although the analysis will most certainly go into a greater le vel of death concerning each of the pros and cons of a say-so federal sales tax, figure 1.0 below helps to sustain sleep illustrate some of the key points that will be under discussion within this brief analysis. Figure 1.0 Trade-offs of a nation-wide federal sales tax structure Pros levels the playing field surrounded by all tax payers aids investments benefits 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(prenominal) on spending augments 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 aim any tax burden wh atsoever (Jones 6). As such, a federally mandated sales tax would be a system that would invariably change this moral force and ensure that each individual who participate in the economy would be a same rate. other 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 unsounded that eliminating a federal income tax would also have the added benefit of doing away with an incredibly costly and incompetent Internal Revenue Service a br anch of the government 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 root word that invariably benefits each and every participant within the economy. For instance, the first and most salient concern is with regards t