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John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:
H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information: http://www.fairtax.org & http://www.salestax.org
I had a discussion a long time ago that basicly said tax revenue for the federal government should be pegged to 1.5 times the current state retail sales tax.
It made for an interesting discussions for several hours about how California would either lower it's sales tax or that states would then compete against each other for business by lowering sales rates.
We even kicked around the possibility of one state eliminating the sales tax and only relying on property taxes and what that would do.
I must admit it was an interesting mental exercise.