I think we should consider a national sales tax, also referred to as a consumption tax, because it encourages savings. In fact the Fair Tax book advocates eliminating all income tax and switching to a sales tax only system. It's an interesting read and did you know that a few of the world's largest economies are already run on a sales tax only system? It's true: Texas and Florida have no income tax.
In some ways, a consumption tax would be much better than a flat tax. This would ensure that everyone who is in this country - even those here illegally - would still be paying tax for the services they are provided.
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