The proposed national retail sales tax and its impact on individual taxpayers
As a result of the many problems perceived with the United States income tax system, four major tax reform proposals are being debated in Congress: the Value-Added Tax, the Flat Tax, the Unlimited Savings Allowance Tax, and the National Retail Sales Tax. Of these, the National Retail Sales Tax is the mostdifferent from the existing system. This article summarizes the first three proposals to provide background, and then analyzes the National Retail Sales Tax in detail. To illustrate the impact of the National Retail Sales Tax on individual taxpayers,three model scenarios were developed corresponding to major classes of thepeople who pay the U. S. personal income tax. Each situation compares the tax liability under the existing U.S. income tax system to the expected tax liability under the National Retail Sales Tax.