With due respect to Rob L, of Hartselle, Alabama - who started this petition on the White House site where it was quickly throttled: "The single federal consumption tax encourages everyone to "pay their fair share". All consumers will pay a Federal sales tax with every mercantile purchase. This broadens the Federal taxpayer base from Social Security card carriers to everyone who makes a mercantile purchase. It eliminates the requirement that virtually the entire working population comply involuntarily with extremely burdensome tax laws and regulations, in a way which violates the Thirteenth Amendment.
The FCT, or Federal Consumption Tax, should replace the Federal income tax in phases, until the IRS is re-oriented completely to collecting the FCT as
required by law. The first phase should be that all people whose income
is less than $25,000 per year net income should not be required to pay any
income tax at all. This doesn't mean they won't pay any taxes - but it does
mean that when they do pay taxes, they will pay voluntarily, and only
when they want to, in order to make a purchase. Once you pay the
tax, you are done with it - no looming deadlines, no possibility of
imprisonment for inability to master skills that accountants go to
college to learn.
There would be no possibility that "the rich" would be overtaxed
by a "soak the rich" mentality - nor that wealthier people would
be able to completely avoid paying taxes at all through tax shelters.
Indeed, since all payment would be voluntary and per purchase,
wealthier people who can afford to pay more would pay more -
and wouldn't complain about it, since they would also have the
option of avoiding the tax by not purchasing the item in question,
or by postponing the purchase.
As a result, the Government would increase revenues and decrease
collection costs, since the IRS would not have to monitor everyone
in the United States in order to collect taxes - all they would be doing
is collecting taxes from people with mercantile licenses.
The underground economy of people who provide contractual services
without the benefit of a mercantile license would not be touched, and
this is why: Nickeling and diming waitresses and startup small contractors
and babysitters and home tutors to death amounts to an income tax for
self-employed individuals. These should be exempt from the sales tax on
the sales of their own services. This isn't unfair - because such individuals
will be paying the tax anyway, when they buy things! By eliminating the
need for every sole proprietorship to obtain a mercantile license, government
would simply be realistic enough to allow sole proprietorships to exist
and grow - to the point where they attain the status where their scale of
operations requires a mercantile license. The idea that government should
tax private tutors is ridiculous, because it amounts to restraint of trade in
a way which favors a Government monopoly on education, and because
Government should allow teachers to teach - especially considering the
fact that American education needs support, not a slap in the face, from
Government. These sole-proprietorship taxes are always more
expensive to collect than any other form of tax, and these taxes
tend to criminalize ordinary and harmless activity. By allowing
small American businesses to survive, flourish and grow, the
Government creates an opportunity for the tax base to expand
at the margin on a regular and reliable basis.
Different items could be taxed at different rates. Food bought from a
seller with a mercantile license might be taxed at 1%. An imported
sports car might be taxed at 100% of its value. As long as the tax
rates are equally enforced across the mercantile base, there is no
reason to avoid setting lower rates or tax exempt status for certain
necessities, and to set higher rates for forms of consumption which
tend to decrease the national wealth; such as buying a car or truck
with more imported content as opposed to more domestic content.
There would be no such thing as anyone not paying their fair share
under such a system. There would be no such thing as tax evasion.
Rather, everyone would WANT to pay their fair share of taxes, as a
condition of enjoying the American way of life, and as a way of preserving
America for future generations.
Along with eliminating the income tax at the Federal level, State and
municipal income taxes should also be phased out according to the
same timetable - thus eliminating involuntary servitude in the United
States. A tax structure which is all-voluntary is conducive to freedom.
PO Box 877
Edgmont, PA 19028-0877
December 4, 2012