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Who administers, audits, and collects the flat sales tax? And who decides what counts as "sales" on which to collect this super-simple tax? I assume we would ta
by skywhopper 11y ago
Who administers, audits, and collects the flat sales tax? And who decides what counts as "sales" on which to collect this super-simple tax? I assume we would tax the sale of pencils and computers. What about houses? Stock? Haircuts? Babysitting? Will companies be asked to pay taxes on their cost-of-goods-sold (currently deductible from corporate income taxes)? Or their employee's salaries?
- paulddraper 11y agoAt the federal level, there's an organization called IRS. Yes. I'm not sure if you're aware, but sales tax is already ubiquitous in the US. The taxable entities are far fewer than income tax, making for less administrative overhead. Tax evasion rates also lower. Of course there are tricky questions, but they're already being answered, IMO better than the personal income quagmire. Having both today is a complicated tax structure (corporate taxes and sales taxes). Between the two, sales tax is the simplest choice.