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

The complexity of the current United States tax code and the current tax rates place an excessive tax burden on almost everyone from the individual taxpayers and small businesses to billionaires and large corporations. The excessive tax burden robs the consumer of purchasing power and businesses of capital that could be used to expand their operations. For the sake of narrowing the debate, I will focus my opening statement on how the current tax code affects individual taxpayers (families, students, etc.) and how replacing the current tax code with a national sales tax will empower them to play their roles in rebooting the American economy. The income tax data that I use will come from TaxRates.org (http://www.tax-rates.org...) and covers the 2014 tax year. In the 2014 tax rate schedule, I have identified three income groups for unmarried taxpayers and two groups for married taxpayers with a total household income. I will examine each in turn, beginning with unmarried taxpayers. The first group that I have identified are taxpayers who earned between $9,075 and $36,900 in 2014. These taxpayers are students who are trying to work and go to college at the same time, new college graduates who have taken entry level jobs to gain experience and pay off their student loans, and lower blue-collared laborers. The marginal federal income tax rate for this bracket is 15%. Therefore, a taxpayer in this category making $20,000 per year will need to pay $3000 in federal income taxes. After factoring the cost of living expenses, a person in this tax bracket is left with very little discretionary income, which will limit their upward mobility in the market. The second group that I identified were the taxpayers who fell between $36,900 and $89,350 in income. The people who fall into this category can be small businessmen, middle class professionals such as accountants, teachers, etc., and middle class blue collar laborers such as plumbers and electricians. The marginal federal income tax rate for this bracket is 25%. Consequently, a taxpayer who earns $65,000 per year will pay $16,250 in taxes. Finally, the third group that I identified were the taxpayers who fell between $89,350 and $186,350 in total income. These people include the lawyers, the doctors, and the tech experts who provide the services that make our lives function so smoothly. They will pay a marginal federal income tax rate of 28%. Someone who makes $100,000 per year will pay $28,000 in federal income taxes. In summary, the three examples I used will pay $3000, $16000, and $28000 respectively in federal income taxes. However, what if we replaced every federal tax with a simple 13% national sales tax and compared it solely against the results of the study on the income tax (ignores other taxes levied by the federal government). Assuming that the taxpayer spends every dime that they earn, the three examples I used would pay $2600, $8450, and $13000 in federal taxes for 2014. However, most individuals don't spend every dime they earn so the actual tax burdens would be on the lower end of these numbers. What effect would a national sales tax of 13% have on the economy? Consumerism drives the American economy. With more money to spend, the American consumer would be able to afford more. Many individuals would save their money to make purchases that they wouldn't have dreamed of under the current income tax structure. The subsequent rush to buy would spark an economic revolution in the American economy. Prices would drop as people demanded a larger quantity of goods and services. Businesses would expand to meet the greater consumer demand and would create more jobs. Consequently, everyone's standard of living would be improved. Afternote: This is my first debate on here. I look forward to hearing the arguments that my opponent will present. I greet him/her in advance and wish them good luck.