Members of Congress have recently announced a desire to get rid of the current income tax code and replace it with a new system for obtaining revenue to operate the U. S. Federal Government. There are several alternative replacements being proposed. NDAC has been studying these two approaches, and some others, for several years, and recommends a National Sales Tax as the best alternative.
Numerous factors contribute to the analysis of revenue systems.
In fact, it is the overriding aspect taken together with the public disdain for the IRS that leads NDAC to recommend a National Sales Tax to replace the income tax. Furthermore, prediction of revenue based on sales statistics will be more accurate than prediction based on analysis of income. NDAC recommends that the IRS be dissolved. Congress and the President like the current income tax system because it allows them to control public behavior through tax incentive and penalties. The same controls can be applied to a National Sales Tax by adjusting the tax rate on selected categories of products and services, without government intrusion into a citizen's personal lifestyle.