NTU: A State-Based Federal Tax System?

An analysis of The Neutral Tax by the National Taxpayers Union states:

“…The new system would take the responsibility of collecting taxes away from the federal government, leaving the states to decide the methods and parameters to tax citizens. Bringing the notion that states are laboratories for democracy into play, governments could choose to merely expand existing systems or choose to reform to collect the necessary funds. The goal is to allow states to have the freedom to reform their systems without having to also conform to the federal income tax-based framework. For example, today, taxpayers in Florida (and six other states) don’t pay state income taxes (and generally pay higher sales or use taxes) but still must pay federal income taxes. This system makes having a comparatively more efficient sales tax system less advantageous because people are a part of two systems. Having a Neutral Tax system might increase efficiencies by decreasing compliance costs for households and businesses…”

Read the full article here