Rethinking the Tax System
The concept of a more efficient and cost effective tax system is nothing new of course. One example of a proposed tax system that tries to reconcile the regressive nature of a sales tax with the need for a more efficient system is the Fair Tax. The Fair Tax Book by Neal Boortz and John Linder spells out the particulars. The Fair Tax would tax all new items and would give a “prebate” to every taxpayer on poverty level spending whether they spent the money or not. The current fiscal and economic situation presents an excellent opportunity to rethink and improve the way we do things.
The Washington Post has an excellent article about proposed tax changes entitled “Once Considered Unthinkable, U.S. Sales Tax Gets Fresh Look.” (http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052602909.html)