This levy would repeal nearly all federal taxes (including the income tax and the payroll tax) and replace them with a single-rate national salestaxon the purchase of all goods and services.
If this is a product-based business, the govt reaps twice, once via the higher taxes intially charged to the business owner and then again onsalestax charged through sale ofgoods.
In January, Rob Woodall (R-GA) introduced a bill in Congress to repeal income, employment and estate and gift taxes and instead impose a 23 percent salestaxon the use or consumption of all goods, properties and services.
The European Commission has said it is studying a proposal to impose value added tax (VAT) onsalesof music, software and other "virtual" goods over the internet.
That puts DSL providers at a particular disadvantage, a Sprint (nyse: FON - news - people ) executive testified, because state and local telecom taxes are so high--an average of 13.9% of bills across the U.S., compared to an average 6% salestaxon other goods and services.