As Congress and President Bush jump headlong into a battle over tax cuts, one large taxpayers’ organization is convinced that the income tax should be scrapped completely in favor of a single-rate retail sales tax. Such a tax, the argument goes, would free up billions of dollars in collection and filing costs and would bring true fairness to the tax system. Carrie Ardelian preaches the national sales tax with clarity and vigor. She is with Americans for Fair Taxation, which boasts over 400,000 members nationwide.
In Sunday’s edition of WorldNetDaily, writer and talk show host Geoff Metcalf interviews Ardelian about her organization’s efforts in revolutionizing American taxpaying.
Ardelian believes that the current income tax system adds significantly to the price of goods.
“The prices of products and goods are about 20 to 30 percent larger than they would need to be,” she explains. “When a corporation creates a product — let’s say it’s 10 bucks — they need to make a dollar profit to be competitive. They’re going to charge $11 for that product. If it costs them $10 to create it and there’s a dollar in tax they have to pay, they are going to charge you $12 in order to continue to make their dollar. We found through this research that once we actually extrapolated what that imbedded tax was, depending on the item, it was anywhere from 20 to 30 percent.”
To answer critics who charge that a sales tax would hurt the poor, Ardelian cites the rebate element in her group’s proposal.
“One of the provisions we took into account was that — especially at the lower income or the lower brackets — individuals need to be able to pay for necessities. So, we offset the tax consequences with a rebate at the beginning of the month to make sure that people wouldn’t be paying tax on the basic living necessities.”
Ardelian doesn’t hide her disdain for the current tax system:
“When they start talking ‘targeted’ tax cuts, it always scares me, because it seems we have enough of a target on our backs as it is. I don’t think people sometimes realize how pervasive [the income tax] has gotten. If we put our tax forms end to end to end to end this year, it would actually wrap around the earth 28 times.”
Don’t miss Sunday’s edition of WorldNetDaily for Geoff Metcalf’s in-depth interview with sales-tax promoter Carrie Ardelian.