Let’s Make a Deal… I’m not talking about the Monty Hall game show that ran from the 60’s until the 2000’s and still has a version in production today. This post is about a proposal for a national sales tax.
Would you exchange a national 30% sales tax for the elimination of federal income, corporate income, payroll, Social Security & Medicare (taxes), and estate taxes, as well as closing the IRS? While this particular proposal (The Fair Tax Act) may not be the vehicle for tax reform, few would argue that the U.S. tax code is complex, if not incomprehensible, and could use some reform. As of June, 2022, the IRS had a backlog of 21.3 million unprocessed paper tax returns and received over 73 million calls. There’s clearly a problem with complexity here!
A host of different proposals are introduced to simplify tax collection in the country. Intrepid Leadership Matrix readers will recall the post on Value-Added Tax (VAT) proposals that countries around the world depend on for revenue. While a simpler tax system is ideal, the concern is not necessarily any of the proposed changes. The concern is that a major change in tax policy would be done in isolation, thereby increasing taxes and perhaps also the complexity of the system.
So, Let’s Make a Deal! What is your take on a better way of collecting taxes? Reach out here to let me know your thoughts! I’ve included some analysis of the Fair Tax Act by The Tax Foundation below.
~ Brian Kasal- The Leadership Matrix
Click here- Tax Foundation- Fair Tax FAQ
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P.S.- Did you see my last Leadership Matrix post? Capitalism Without Competition