That's why I decided to join Billy Tauzin in introducing the National Retail Sales Tax Act. It's an excellent piece of legislation. We don't have all the answers. But we do have the detailed blueprint of a bold plan to dramatically reshape the way in which the federal government collects revenue. The fact is, the American people already are paying a de facto national sales tax every time they make a purchase.
Businesses pass on the cost of paying income taxes to consumers.
The national sales tax will usher in a new era in which every American will know exactly how much in federal taxes they pay every year. It will usher in a new era in which the federal government will no longer penalize and discourage investment, entrepreneurship and saving. As a result, every wage earner can consume up to the poverty level free of any federal taxes. The basic test of any tax plan is the impact it will have on average American families. The Tauzin-Traficant plan passes this test with flying colors.