With the advent of the tea party and the Republicans regaining of the House of Representatives in 2010, a frequently discussed topic is the level of taxation in America. Many people think about this topic every year around April when they file their taxes and wonder where all their money has gone. As a result of this discussion of taxes, many people have begun to consider a national sales tax as a possible replacement of the income tax. While this idea sounds good on paper, it unfortunately comes with many flaws that inhibit its effectiveness.

One of the biggest problems with a national sales tax is the way in which it discriminates against lower income households. As a percentage of their income, poor people spend a significant amount more than higher income households. The reason for this greater spending is because there is a certain amount of basic necessities that everyone needs. Everyone has to buy food, and find a place to live, and so the amount of money this stuff costs is significantly more significant to a poor person than a rich person. Since a sales tax only taxes the money you spend, a poor person is likely to be hit harder by this form of tax than a wealthy person.

Second, this form of tax can cause unexpected changes in the way in which people spend money. Proposals for a national sales tax often allow basic goods to go untaxed. As such, food won't have any tax on it, allowing people to buy the things they need without repercussion. However, when certain goods don't have taxes, people will shift their purchasing habits to take greater advantage of these products, as they cost proportionally less compared to other products that offer the same amount of enjoyment. Instead of going to a movie or out to dinner where the taxes will rise the prices significantly, someone might buy a high end steak without tax and cook it themselves.

As a result of some of these burdens, a national sales tax isn't as nice as it seems and is far from the "fair tax" it is often called. For people truly interested in a fair tax that doesn't discriminate against the rich or poor, a flat income tax offers the most benefits. This doesn't offer bias on any individual and simplifies the system to remove the needs of the IRS.