Quote:
Originally Posted by sherm
Who's going to make sure that the sales tax you pay, gets to the government? It would still have to pass through the provider of the goods sold, and what's stopping them from stashing it away?
I used to think this was a great idea, but we need checks and balances, and doing something like this wouldn't eliminate the IRS. It would just tighten up a ton on employers.
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Imagine the amount of time that the IRS spends dealing with returns right now... over 300 million citizens in the USA and probably 1/2 of those (or more) file returns. Instantly get rid of those and the IRS would be responsible for verifying sales revenue vs tax revenue received. No deductions, no loopholes, no anything.. just A vs. B. Match that against bank records in audits. No different than right now.
Employers also right now are responsible for taking out your income tax, employment taxes (social security), Medicare... what's to stop them from stashing that away right now????