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

Definitions: Wealth Inequality: Wealth inequality in the United States (also known as the wealth gap) refers to the unequal distribution of assets among residents of the United States. Wealth includes the values of homes, automobiles, personal valuables, businesses, savings, and investments. (Hence very different from income inequality) C1 R4: No nation has ever implemented a National Sales Tax and no nation will for years to come. The VAT barely resembles the NST, but that does not mean it is the equivalent. According to an article from Economy Watch, their team stated "A Sales Tax, as compared to VAT is the percentage of revenue imposed on the retail sale of goods. Unlike VAT, sales tax is levied on the total value of goods and services purchased.". Not only that but VAT doesn't change the income tax policy in anyway: furthermore, VAT completely avoids tax evasions while the Sales Tax can be avoided via internet purchases. Also the founding fathers did intend states to be little experiments to see which survived better than others, but not every experiment will have good results. C2 R4: Ok I did not speak of INCOME inequality (Rezamee R3), I was implying WEALTH inequality, both inequalities are completely different and I am right on both of them. For one, there is an a income inequality that can take place with a NST even though the government isn't directly affecting the income of the persons career itself. How? Well it is called capitol, which can be considered a type of income, especially in the world of saving and investing, well-off individuals will bring in more capitol, while poor and middle class citizens on the other hand... not so much. Also I will try not to offend, but I will assume you are working a near minimum wage job due to your statement on your income per week (Cameron R4). 400 dollars is how much you will save on the lower end of the tree, while middle class families/individuals will save almost none and they will be burdened to pay more on consumables. Now back to wealth inequality, this would rise considerable and may jeopardize the economy for the poor and middle classes. How you may ask? If the National Sales Tax were to occur, the rich would make a considerably larger amount of capitol, causing businesses to raise prices as they see more wealthy individuals having upwards of an extra 50,000 dollars in their pockets. And when I say 'businesses' I do not mean all businesses, just the ones that sell more high end products (Cars, Televisions, Real Estate) that can still be viable for a middle income person, if they work hard enough for it. These companies would raise prices so they could fabricate more revenue for the company, I mean come on, it is how business works, selling to rich people sure makes a lot more money than selling to middle or poor income peoples. C3 R4: Your source explains that the sole goal is to promote economic stability and welfare through Federal Subsidies. This is not the entirety of federal spending. And your solution for a budget deficit (if NST occurred) is to cut budgets of medicare programs? This would be one of the last things the government would cut and the defense budget would take hard its. It is how Obama dealt with the 500 billion dollar deficit, he cut defense spending. And even if they cut medicare programs, do you think the elderly would be happy with this? Do you think their kids and grand kids should have to work harder in order to pay for their grandmas diabetes treatment? C4 R4: This is a topicality issue, if you were implying the improved upon theory while I was going of the National Sales Tax bill of 1999, there will be conflict onto which is supposed to be taken into account. I believe I have the firmer stance due to you not specifying which NST we are talking about in the first round. To clarify, the 1999 NST bill did not mention taxing business to business transactions. C5 R4: Your example on Tennessee's Sales Tax's goes perfectly with my proposition, the Tennessee government is producing less taxes than it takes in. Meaning that the federal government is spending more money on Tennessee than Tennessee is giving back, making it one of the taker states. This proves that a National Sales Tax would lead to a DECREASE in tax revenue, I mean just look at Tennessee and their tax policies. In summary, A NST will lead to a tax revenue decrease, which would lead to budget cuts and lay offs, and a greater wealth inequality. Not only that, but my opponent did not specify which National Sales Tax bill/theory he was using, leading me to claim he is fabricating a fake National Sales Tax. My opponent has dropped the argument on a 13% tax rate failing for two rounds. So if the National Sales Tax was passed, how would the middle class deal with it? They would get no tax relief and be burdened with higher taxes on products. This is even more frightening knowing the middle class drives our consumer market, so a blow to them would in fact hurt our economy. Explain to me, how would you fix such a problem without introducing a form of exemption? Exemption would go beyond the bill of the National Sales Tax (1999). Sources: http://www.economywatch.com... https://www.govtrack.us... http://wallethub.com...