IF a Natâ€™l Sales Tax was INSTEAD of an Income Tax (ok-maybe Iâ€™m dreaming), Iâ€™m all for it. Simply put, it seems so much more fair to me to be taxed on what you spend rather than how hard you work.
There are many, many people who work â€œunder the table.â€ This would eliminate them getting off tax-free. Some of these people want to be back in a â€œnormalâ€ job, but are afraid of the IRS. The result is they keep their â€œunder the tableâ€ job and continue to not pay taxes.
(WARNING: PERSONAL PART) I also have personal reasons for wanting this. I have been thinking about posting this for awhile, but itâ€™s a tough subject for me, soâ€¦ Please donâ€™t anybody yell at me. When I was married, my husband had his own business. He didnâ€™t file or pay taxes for years. I was working a regular job and had taxes taken out of my paycheck. I even claimed zero to help even it out. To make a long story short, we are making monthly installments to repay taxes. We have incurred hefty interest and penalties. Every time we make a payment, the balance only goes UP a little.
I would have not been part of this, but I was told I would need to itemize if he was. I had nothing to itemize, so I kept waiting for him. I could have filed a regular 1040, but then he COULDNâ€™T itemize. I couldnâ€™t do that to him.
In our payment plan agreement, we are each responsible for the debt. If one of us defaults, the other owes it ALL. The IRS will collect from the one most likely to pay. That would be me. I also cannot collect whatever my refund would be. Last year it was almost $800.00. Itâ€™s probably around the same amount this year, but Iâ€™m too depressed about it to check. I still claim zero in hopes that if my ex defaults, they will go a little easier on me.
I can't take the risk of owning property. If my ex defaults and I can't pay his half, they could seize anything I own over 6thousand something worth of property. Default includes failing to file. If anyone has any suggestions for me, I would surely appreciate it.
(Back to the original subject) â€“ I do think if we went to a straight sales tax there should still be a plan for people with children, disabilities, etc. Iâ€™m not sure how that would work, but thatâ€™s only fair.