Question 5: Is a retail consumption tax the superior form of taxation because it taxes the underground economy?
A national retail sales tax is the superior form of taxation. It has the broadest base, and is the…
– least expensive to collect;
– most difficult to avoid;
– most transparent;
– least intrusive into our lives;
– taxed only once; and
– taxes the underground economy.
According to Wikipedia, unreported income in the U.S. is conservatively estimated to be over $2 trillion annually, which is over 10% of GDP.
Imagine… With a sales tax, as an individual taxpayer there would be no more receipts to save, no more forms to fill out and submit, no more payments to lawyers and accountants, and absolutely no more audits. Oh happy day!