Replacing the Current Tax Code With A National Sales Tax Will Reboot the American Economy

I would like to note that the title displays "Replacing the Current Tax Code With A National Sales Tax Will Reboot the American Economy". In your third paragraph (round 2) you tried to clear up my "stray" off topic, it isn't off topic, your question clearly states that the tax code will affect the economy; therefore, my claims on how the tax code will affect budget, and prices are justifiable due to chain events. Throwing that aside, I wish you luck again! Definitions Economy: An economy or economic system consists of the production, distribution or trade, and consumption of limited goods and services by different agents in a given geographical location. The economic agents can be individuals, businesses, organizations, or governments. (hence distribution and consumption) National Sales Tax: The idea is to tear up the federal income tax system, scrap it for good, and replace it with a national sales tax. Here's how it would work, and why every citizen ought to give it serious thought. The individual and corporate income tax, the capital gains tax, and the estate and gift taxes would all be eliminated. (Hence government revenue would be hindered due to elimination of certain taxes) C1: You state that the government can't affect income inequality, this is completely absurd. It's quite simple, with the current tax code, rich people create less capitol than with the NST (National Sales Tax), while a person on the bottom of the chain could save around 400 dollars if an 13% NST took place. It's quite obvious to see the income inequality, rich people would save thousands upon thousands while your average minimum wage worker would save 400 dollars. In summary, the gap would be even larger and tax revenues would shrink. C2: (counter to Cameron P3, R2) I hope you know that a National Sales Tax has never been used among any nation-state on the planet and it's for good reason. One the income inequality would be immense with any rate, if it's too low the rich are heavily favored and can save upwards of 50,000 dollars, too high and minimum wage workers are living under the poverty line, a reasonable person wouldn't want either. Two, the government would be in a budget crisis, in turn, they might take more loans.. not good and your idea of reducing government( Cameron, Third Paragraph Round 2) spending even further is effectively ludicrous, our government needs the money it gets and cutting the budget would just make our state on the planet worse (less military spending, less space exploration, less federal workers). Just to remind you, this does correlate to the tax code, a NST would be detrimental to government stature and will cause the unemployment of federal workers which can be linked to families/students. C3: (counter to Cameron P2, R2) Unless you do not fully understand what a NST is I provided a definition of it higher up on my argument. You state "The title of the debate begins with "Replacing the Current Tax Code"", meaning that there won"t be another federal tax levied besides the national sales tax. There would be no other taxes that the federal government could raise. The single tax would create a simple, stable tax policy that would enable consumers to boost the economy through increased sales activity." This is completely untrue a National Sales Tax will bring changes to other taxing methods. For one, if the federal government wants to make up the lost tax revenue they would, due to it being the most logical, raise the taxes on consumer goods, this is a widely accepted fact about the NST theory. Another thing you mentioned "Use the following example: A person who spends $100,000 per year will pay $13,000 in total sales tax while a person who spends $20,000 per year will pay $2600 in total sales tax. They are paying the same percentage of taxes but the rich person is paying $10,400 more in taxes than the poor person is." This is undoubtedly true; however, it only proves that the income of wealthy folks would be significantly higher due to them originally (with the income tax) paying 50 k plus! Thus proving my point that the income gap between rich and poor would be even higher. Some points I would like to add, a 13% tax is preposterous and no member of congress would ever vote to pass a bill containing such a rate, the 23% tax rate has seen light in a bill and would more likely pass in congress. Also you fail to realize that a National Sales Tax wont apply to all transactions making it more of a burden than an omnipotent solution. For example, a NST will only be applied to business to household purchases, there wont be taxes on business to business purchases. I would like to mention that a sales tax will create capitol for the average consumer, but this comes with a cost. One companies can dodge out of this, two it will create vast income inequality with the rich getting richer while the poor get poorer, three the government is too big for it to take any budget hits now; especially with the rise of China and other powers we need our government to do the best it can.