But when you create a tax system that is totally visible, everybody can see exactly what the cost is, that every time they buy something they feel that bite. All of a sudden you have benefits linked to the cost. Our present system is so convoluted most people do not know or understand what taxes they pay, don't have a clue that they pay income taxes twice, once with their withholding and April 15th 1040 form, and once again in the price of all products, goods and services they buy. This has bred a zealous IRS and tax reform fever. Grab your wallet, purse or bank account.
Tax reform is in the air.
For the first time since a constitutional amendment allowing the U.S. government to tax income became law in 1913, a completely new tax system is a real possibilitiy. Both political parties are in the game. Armey's postcard would be for a single, flat rate and few deductions. For the manufacturing sector VAT is an expensive compliance and documentation nightmare. A few whispered words and plain brown envelopes of campaign green are sure to abound.