Originally posted by supervike
So, why retail tax as opposed to just a flat income tax?
The reason the tax is done as a retail tax is that it is able to tax all of the people who don\'t currently even file any taxes. Drug Dealers/other criminals and many people who work \"under the radar\" still contribute in this system as they all purchase clothes etc.. Also all of the illegal immigrants end up paying into the system as they also have to buy things. The idea behind retailers suffering is somewhat problematic. The theory is that because people have not had Social Security and Income taxes taken out of their paychecks they have more income and the tax isn\'t so hard to pay. The numbers seem to indicate that most people would still see more money in their pockets even after paying the higher retail tax.