
national sales tax
A national sales tax is a type of consumption tax levied by the government on the sale of goods and services. This tax is applied at the point of purchase, meaning that consumers pay it when they buy products. The idea is that this tax replaces some or all existing income taxes, potentially simplifying the tax system. Revenue generated from the tax funds public services like education, healthcare, and infrastructure. Supporters argue it promotes fairness by taxing spending rather than income, while critics worry it could disproportionately affect lower-income individuals who spend a larger percentage of their income on necessities.