Since no political jurisdiction in the world has ever successfully replaced an income tax with
a sales tax, why should we believe the United States is different?
If we move toward a consumption tax system, many state and local governments will equate consumption tax with
sales tax, which they regard as being within their tax jurisdiction.
As advanced by House Republican Dick Armey, a fiat tax with
few deductions would stay neither pure nor fiat for long.
House Majority Leader Dick Armey wants to replace the current income tax with
a single-rate tax with
no deductions other than a generous personal exemption.
Consequently, replacing the current estate tax with
a tax on appreciation at death does not appear to reduce complexity or taxpayer compliance burdens or ease administration.
On October 3, 1996, Tax Executives Institute filed a series of letters with Canadian federal and provincial tax officials concerning the harmonization of the federal Goods and Services Tax with
provincial sales tax regimes.