Society - National Sales Tax

Grassroots Movement

      CATS began with concerned citizens who realized that the income tax code was fatally flawed — that no amount of tinkering with the code could ever “fix” it.

      They found that the best solution to our tax problems was well established: A sales tax, which could be collected by the states and replace the federal personal and corporate income tax, gift, estate, and capital gains taxes.

      An initial survey of taxpayers by CATS revealed that when Americans learned of this national sales tax option, they widely supported it.

      A factor found to have immediate and widespread popularity was that with a National Retail Sales Tax, production is directly rewarded. Those who work hard to get ahead or to support their families are no longer penalized by losing a portion of their income through tax. By removing this major barrier to individual and corporate productivity, the economy and society as a whole will benefit.

      “When you use income as a base, you tax work and you tax savings,” said Representative Archer. “That isn’t where we should tax. We punish people for more work effort. The harder you work, the longer you work, the more you pay! It ought to be, the more you spend, the more you pay. That’s where we ought to raise our money.”

      From 1990 through 1997, as word of the National Retail Sales Tax concept expanded, more than 300 CATS chapters formed across the country at the local level. Some of these chapters have grown to include several hundred active members.

      And as the number of sales tax supporters and CATS chapters grew, it was inevitable that political support would follow in a similar trend.


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