Benefits of the National Retail Sales Tax
By Richard Gruetter
- The only way to get the IRS out of the private lives of citizens, churches, small businesses, and corporations.
- The National Retail Sales Tax (NRST) would completely replace the present tax code. The 16th Amendment would have to be repealed (authorizing an income tax).
- For those in a 28% tax bracket, there would be over a 40% pay raise the first day the NRST goes into effect (28% plus Social Security & Medicare would no longer be withheld as both would be paid out of the NRST) this would be a huge pay raise.
- The retail customer would no longer pay corporate taxes so retail prices should go down 15% to 20% (corporations do not pay taxes, their customers do in the inflated price of the products).
- Drug dealers and others in the under-ground economy would also have to pay taxes like the rest of us.
- The NRST would initially be slightly more than the reduction in cost of the retail product; therefore, the NRST should be slightly more than a wash on the price of goods. Given the huge pay raise received by the vast majority of our citizens, people would still be way ahead financially.
- Some people do not trust the corporations to reduce the cost of their products by the amount of corporate taxes they no longer pay, and believe they would only be gouged by an inflated pricing system. This may be true. A simple transition would include legislation that would require all businesses, companies, and corporations to reduce their wholesale and retail cost by the exact amount of the average taxes rolled into their cost structure for a few months in order gain the trust of their customers. After a few months of this transition period this requirement would drop dead and the free market would again reign. To simplify this transition period into no income and corporate taxes, this transition should begin on January 1, of the year after the 16 Amendment is passed by at least ¾ of the states.
- All families would get a rebate each month, predicated on the family size, equivalent to the taxes paid on the necessities for that number of people. This would not only pay the taxes, SSI, and Medicare for the very poor, but would result in the necessities costing less for all families as the corporate taxes would no longer be rolled into the cost of these and other goods. This would result in a major reduction in the cost of necessities for the poor.
- As there will be no more payroll tax deductions, citizens will be much more aware of the amount of taxes confiscated by the government making it much more difficult to increase taxes. There would be more pressure placed on the federal government to lower taxes and spending.
- The average citizen’s pay will increase significantly more than the slight increase in the retail cost of goods as the result of no more income tax, SSI, and Medicare withholding.
Therefore, there will be much more income left than that needed to make up for any tax write offs for home mortgages, charitable giving, etc. that will be lost. There should be a net financial gain for tax paying citizens - If you don’t buy much, you pay little or no taxes. The wealthy, having more expendable income will therefore be paying much more in taxes, as more goods will be purchased.
- There would be no more death taxes or capitol gains taxes. This should result in a tremendous stimulus in investment capitol, and growth in business.
- Retirement savings withdrawn will no longer be taxed freeing up more cash for our seniors, and as the number of retirees increase, injecting large sums of money back into the economy stimulating business.
- The tremendous reduction in record keeping and tax preparation costs should further simplify and stimulate business.
- This would not only make it easier for the mom and pop businesses, but should greatly enhance our foreign trade as the cost of selling our goods overseas would be reduced by the amount of the tax cost (approx. 20%). This would give our businesses a tremendous advantage in foreign trade.
- Corporations would have more of an incentive to stay in the USA or relocate here.
This should go a long way toward improving our negative balance in international trade. - With no more 501C3 nonprofit tax status our nations historic moral compass would again be unrestrained. The IRS would no longer have their boot on the necks of our pastors, and the churches could again freely engage those social issues that attack our nation’s moral fabric. Those destructive political initiatives like the removal of the Ten Commandments from our schools and government buildings, and the attacks on our families and traditional values, would be more easily addressed from the pulpit.
- What better campaign finance reform could there be than drying up the money that flows from the majority of Washington lobbyists looking for those corporate tax loopholes as a result of there being no more corporate taxes.
- Congress will probably be the major impediment to the NRST, as they will lose one of the major benefits of incumbency; that of corporate campaign funding in return for favorable tax breaks.
- An effective one two punch to reduce federal government size and spending would be passage of the NRST which would allow citizens to realize just how much of their money our government is spending, and couple that with an understanding of Article I, Section 8, of our U.S. Constitution which specifies those enumerated powers which were intended to limit our federal government’s size and spending. People would then at last see the light.
Citizens, rise up and call upon your elected representatives in Congress to:
- Repeal the 16th Amendment, allowing the government to tax your income.
- Trash the IRS code, and then,
- Replace it with the National Retail Sales Tax.
- Contact your representatives and ask them to support: H.R. 25, and S. 25
- You may easily contact them at Congress.org http://www.congress.org/congressorg/home/
All you need to pull up your elected officials is your zip code.