Detailed Summary–Part II
National Sales and Use Tax
 

Immediate Relief and Results
 

• Workers maintain better control of their earnings
• Production is no longer taxed, just consumption
• Most of the necessities of life are not taxed
   
• Encourages production thus revitalizing industry in America
• Encourages rebuilding of inner cities
• Discourages wasteful uses of natural resources
   
• Exposes the true cost of government
• Greatly eliminates the struggle between tax “protesters” and bureaucracy
• Allows the “underground” to resurface and become a viable contribution to production of goods and services
• Greatly restricts the influence of special interests and lobbyists
   

The Income Tax
 

• The Income Tax Act of 1939 is amended
• People need no longer fear the IRS
• Billions of hours of nonproductive labor are eliminated
   
• Mounds of paper work are eliminated
• The cost of the income tax is no longer hidden and embedded in the cost of doing business and passed down the chain with the consumer paying the final tab
• Most likely eliminates state income tax plans because state income taxation piggybacks on federal income taxation
   
• The IRS is reformed into the National Tax Service
• Volumes of complicated tax code are history
• Eliminates personal income taxes
   
• Eliminates corporate income taxes
• Eliminates gift taxes and estate taxes
• Eliminates capital gains taxes
   

Sales and Use Tax
 

• Tax rate of 14%
• Government entities are exempt
• Government mandated expenses such as licenses, permits, passports, are exempt
   
• Sales of bullion, coin and currency are exempt
• Sales made by or to nonprofit schools are exempt
• Sales of prescription drugs, medical supplies and services are exempt
   
• Real estate rents and leases are exempt
• Sales of groceries are exempt
• Sales of plants, livestock and fish used in the production of food for human consumption are exempt
   
• Insurance sales are exempt
• Segregated portions of labor in retail service contracts are exempt
• Incidental or occasional sales such as garage or rummage sales are exempt
   
• Sales for the purposes of recycling are exempt
• Meals provided by companies at company expense are exempt
• Sales that are nonprofit in nature are exempt