Radical Thoughts: Make Sales Tax Illegal1 min read

I want to start by saying that this isn’t something I am proposing or believe in completely, but I think going down the logical rabbit hole is a good exercise. If someone has already done this, I’d love to see the research on it.

Without knowing the details on what this would cause or the legalities on enacting it, I wonder if having sales tax be made illegal and all revenue to be collected in the form of mostly non-regressive taxes or at least less regressive taxes would make sense.

I think we can look to New Hampshire as a model for how this would look. Some of the taxes there are still regressive, so I wonder if a system setup at a federal level where the government universally disperses income taxes based on populations would make sense.

Sales tax is the easiest way for a county or city to collect revenue today. The idea of getting rid of it completely makes a lot of sense when you consider its impacts. Many places do not tax groceries since that is the most regressive of all taxes. Basically, the people who have less money pay the same taxes as the people with more money.

Can we extend that up and ensure that even the poorest areas of the country get the same tax benefits as the richest? Removing sales tax may be a small part of that.

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