Income tax revenues experience wild swings as the economy cycles up and down. But sales taxes are more robust because at some level consumers need to pay for the basics and essentials of living which make up the bulk of purchasing.
In an economic downturn, consumers will forego the new home, the new car, the planned vacation or the new flashy set of outdoor Christmas lights. But these things don’t add up to much as a percentage of gross purchases compared to the amounts spent for essentials. So states with sales taxes but without income taxes see smaller swings in revenue.
The Federal government could pass the FairTax legislation which has a built-in tax cut in the manner of a tax rebate which effectively voids federal taxation for all Americans up to the level of purchases for the necessities of living, the essentials.
The FairTax legislation gets rid of the federal income tax and the IRS while putting tax collection into the hands of the states and making enforcement much easier. The legislation does not tax exports so that American products sold overseas become immediately more competitive in price thereby bringing jobs back to American soil. The FairTax boosts GDP by 10% in its first year.
The IRS needs to be terminated. Even if we have a so called “fair tax.”
It is now under the sole direction of Obama, and Congress has no teeth to provide the proper overview and supervision.
The IRS is nothng but a political wing of the Obama junta now running the USA. And they are very much armed and dangerous.
http://thenewbostonteaparty.com/2013/06/02/irs-armed-and-dangerous.aspx
Mark Levin:
The IRS has outlived any semblance of usefulness to the People of the USA, and its work in discriminating against conservative organizations cklearly violates the COnstitution. The IRS needs to be destroyed, dismantled and put into the dust bin of history.