A National Sales Tax System Persuasive Essay by Nicky

A National Sales Tax System
An argument for a VAT tax as a national sales tax alternative in the United States.
# 149197 | 1,326 words | 4 sources | APA | 2011 | US
Published on Nov 29, 2011 in Economics (Taxation)

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The paper discusses the flaws in the United States' current income tax code and argues that developing a national sales tax system could help decrease the budget deficit, make the system fairer, help pay for other government programs, and it would make income tax season much easier for most Americans. The paper specifically considers the "Value-Added-Tax" or VAT as an alternative tax and outlines the incentives that should encourage America to switch to this form of tax.

From the Paper:

"Some kind of tax reform has been on many people's minds for year. President George W Bush talked about it during his administration, prior presidents addressed the issue, and people have advocated for tax reform for decades. However, simply changing the system to a national sales tax type of system is not as easy as it might seem. Expert Boyd continues, "Tax reform is much more complex than lowering or raising taxes. It implies shifting the burden among taxpayers, or changing the financial activity being taxed" (Boyd, 2005). That of course, is controversial, which makes any attempt to change the tax structure controversial, as well. The alternative tax system under consideration that most people take seriously is a "Value-Added-Tax" or VAT, which is in use in 130 countries around the world. Rates range from a 5 percent tax to 25 percent and it has been so successful in some countries, like Ireland, that they have been able to attract more outside businesses because of reduced corporate tax rates because of the tax (Montgomery, 2009). The VAT tax is much simpler to administer and collect, because it is paid by consumers and reported and collected by businesses for the government, just as any other sales tax is, and it is fair, because every consumer pays the same rate, regardless of their income or taxable income."

Sample of Sources Used:

  • Boyd, T. (2005). Tax reform in a global economy: Shifting the tax burden. Review of Business, 26(2), 48+. This is a business journal that is greatly impartial in its judgement, so the article is more balanced and fair than one produced by a pro-VAT tax source. It is conservative, but it advocates the positive aspects of a VAT tax on businesses and individuals, and how it would simplify doing business in a global economy, as well.
  • Kotlikoff, L.J. (2008). Why the fair tax will work. Retrieved 12 June 2009 from the Americans for Fair Tax Web site: http://www.fairtax.org/site/News2?page=NewsArticle&id=9321&news_iv_ctrl=1521.This is a web site advocating a VAT tax called the "Fair Tax," and so, it exists to convince Americans that a national sales tax is desirable and will work. This particular article refutes an economist's claims the tax is a bad idea, so it is subjective at best, fairly liberal, and funded by like-minded individuals who may not want to hear the other side of the story.
  • Montgomery, L. (2009). Once considered unthinkable, U.S. sales tax gets fresh look. Retrieved 12 June 2009 from the WashingtonPost.com Web site: http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052602909.html.A journalist's view of how a national sales tax could benefit the country, the economy, and the budget deficit, and how the VAT tax works in Europe. (The VAT tax is a value-added-tax added to purchases throughout Europe.)
  • Rockwell, L. H. (2008, April 14). The great tax myth: By law we must collect tax. The New American, 24, 13+.This is a conservative article that argues against the VAT tax for a number of reasons, including assertions that it will not reduce taxes, it will be difficult to administer, and people will find loopholes just as they do now.

Cite this Persuasive Essay:

APA Format

A National Sales Tax System (2011, November 29) Retrieved May 25, 2022, from https://www.academon.com/persuasive-essay/a-national-sales-tax-system-149197/

MLA Format

"A National Sales Tax System" 29 November 2011. Web. 25 May. 2022. <https://www.academon.com/persuasive-essay/a-national-sales-tax-system-149197/>