Oh no. I'm just explaining why it's more efficient for the IRS to do it this way. I'd personally like to abolish income tax and only tax sales, with up to 100% tax on luxury goods and no tax on food, etc.
The IRS could generate online forms (or snail mail) with what they know and let us add deductions and other income. They should know salary/wages, they could know investment income (not sure if broker report to the IRS, or just send forms to filers).
Even if the filer has to manually enter deductions, credits, etc, doing it on an IRS site has several benefits... no $50+ fee for H&R/TaxCut/etc, no $500+ for a CPA (for fairly typical tax situations), no worrying about whether online submission processed correctly (because you'd be submitting directly to the IRS instead of relying on a 3rd party to submit for you). Multiply that time/money/stress savings across the population and it's a MASSIVE benefit to society.
Fuel and food, no tax.
School supplies, shoes, clothing, any item under $100, no tax. Over $100, ramp it up.
Diamond rings, 100% tax.
Alcohol and cigarettes, 20-30%.
Used cars, no tax.
New cars, 10% up to 100%. Credits if they're electric or extremely fuel-efficient.
Playstations, high end sneakers, Smart TVs, iPhones, rims, jewelry, expensive furnishings, rugs, anything better than your basic washer/drier: 100% tax.
Books: Free and subsidized by the government, as many as you want, any book ever written.
Healthcare: Free.
College: Free.
Basically under my plan, as long as you get stuff you need for your family, you pay no tax. If you get stuff you want for your pleasure, you pay tax on it.
How's that regressive?
The only real downside I see is the potential for a massive black market in luxury goods, tobacco and alcohol. But legalizing and taxing pot and prostitution should take some of the sting out of that.
Low earners drive some shit cars, while you and me can (probably) afford a brand new Audi. How is that fair? /s
>>Which you and I could easily afford.
That's the key part here. You tax those who can afford it the most.
I consider myself pretty high income. If I was just taxed on consumption, I would bet I'd pay probably half as much tax as I do now.