Lars Larson: A National Sales Tax

It’s a unique idea for a Democrat Congressman.

I got the chance to talk to Democrat Congressman Brian Baird. We disagree on all kinds of things, but not on everything and he’s come up with an interesting idea. Whether he can get it past his Democrat colleagues I don’t know.

In basics, it’s this. Get rid of the entire federal income tax. Get rid of all the payroll taxes. Replace them with a national sales tax. A national sales tax that is somewhat graduated so that the more expensive an item you buy, the more you pay in sales tax percentage. That means the lawyer buying the Porsche would pay a whole lot more money than the average guy buying a Chevy, Ford or Dodge.

It’s an interesting idea if you could replace all of that income and turn America from a country that taxes income into a country that taxes spending. It would give you an incentive to save money and makes sure that a lot of those people who aren’t paying any income tax now have to pay.

That’s an idea even conservatives might like.

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