We can replace the personal income tax, corporate income tax, inheritance tax, gift tax, and the Social Security payroll tax with
a simple federal tax on retail sales and services of between 25 percent to 30 percent.
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.
The purchaser must remit sales or use tax with
the payment based on the jurisdictions where the supplier is registered and would have collected tax had an invoice been issued.
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.
As advanced by House Republican Dick Armey, a fiat tax with
few deductions would stay neither pure nor fiat for long.
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.