Simply put, the tax codes are a literal encyclopedia of loopholes that allow multi-billion dollar companies pay nothing in taxes. With this in mind, the current mess is broken. By requiring everyone pay a sales tax, everyone pays a fair share based on the lifestyle or industry of the business. This means a house building company will pay sales taxes on the lumber, wiring, piping, and windows. The owner will pay a sales tax on the finished product. While this might seem like double taxing, it allows for the elimination of an income tax.
Let’s assume that someone is earning a modest $10/hr, and works 40 hours a week. With 25% for all of his current taxes, he is paying $100 per week in taxes. If he is spending less than $100 in sales taxes, he will actually be paying less than what he is now. If he goes to a McDonald’s, and buys a $10 meal, he will pay $4.50 in sales tax for a total of $14.50. If he buys one meal a day, for each weekday, then his taxes would have been $22.50. Someone making $10/hour is not likely to have the revenue to buy a lot of luxuries, or items beyond the essentials, so in this scenario, he will be paying less in sales tax than he would otherwise pay in income tax under the current system.