Sunday, May 31, 2020

National Retail Sales Tax (NRST) Experiment

Could the federal government conduct an income tax experiment?

States without a state income tax (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming) are arguably out preforming income taxed states so why not eliminate their federal income tax as well and see what happens?

The lost federal revenue could be replaced by a national sales tax piggy backed on the state sales tax.

But that would be regressive!

Yep, but the National Retail Sales Tax (NRST) experiment in conjunction with a "basic income" rebate would eliminate the NRST's regressivity.

If a seven states experiment is a bridge too far how about picking just one state? I would suggest Washington.