Here is a system designed by chatgpt
Designing a **progressive sales tax** to replace the U.S. income tax is ambitious but possible. The key idea is to **scale tax rates based on purchase price tiers**, protecting low-income consumers while ensuring high-value luxury purchases fund government revenue. Here's a conceptual design:---### **Progressive National Sales Tax (PNST)**#### **Purpose:**Replace federal income tax with a tiered consumption-based tax that is **fair**, **simple**, and **revenue-generating**, while minimizing the burden on the working class.---### **1. Tax Rate by Purchase Price Tier**| Purchase Price (per item or per transaction) | Tax Rate ||---------------------------------------------|----------|| $0 – $25 | 0% || $25.01 – $100 | 2% || $100.01 – $500 | 5% || $500.01 – $1,000 | 8% || $1,000.01 – $10,000 | 12% || $10,000.01 – $100,000 | 18% || $100,000.01 – $1,000,000 | 24% || $1,000,000.01+ | 30% |- Rates apply **only to the portion within each bracket** (like marginal income tax).- **Basic needs** like food, rent, healthcare, and education could be **exempt or zero-rated**.---### **2. Optional Features for Fairness**- **Prebate system**: Every citizen receives a monthly prebate (e.g., $300/month) to offset the tax on essentials—modeled after the FairTax concept.- **Luxury surcharge**: Extra 5-10% on luxury items (e.g., yachts, private jets, supercars).- **Exemption card for low-income individuals** (means-tested) for specific categories.---### **3. Revenue Goal**- Target revenue: ~$4.5 trillion/year (current federal tax revenue).- Sales tax base would cover **all new goods and services**, including digital products, financial services, etc.- Assumes a large base and **robust enforcement** with digital tracking.---### **4. Advantages**- Incentivizes saving over spending (good for capital formation).- Simple compliance: tax is collected at point-of-sale.- Reduces tax avoidance/evasion related to income hiding.- Makes taxation **visible**, encouraging democratic accountability.---### **5. Challenges**- Regressivity if poorly designed: mitigated through prebates and exemptions.- Transition impact: must phase in while phasing out income tax.- States would need coordination or integration.---Would you like a version that also includes carbon taxes, wealth surcharges, or digital transaction fees for additional fairness and sustainability?
