Hello, this is Ron Paul with the weekly report. Sales taxation is theft. A group of

house Republicans is supporting legislation that would replace federal income, payroll,

estate, and gift taxes with a 30% national sales tax. The bill also eliminates the internal

revenue service, giving states the responsibility to collect the sales tax and send the revenue

to DC. This deputizing of states to act as federal tax collectors violates the principles

of federation. Especially since the plan forces states that have chosen not to make their residence

pay sales taxes, create a mechanism for collecting sales taxes. A 30% sales tax on all goods,

with no exceptions and no deductions, will increase taxes imposed on millions of Americans.

The sales tax legislation provides a way Americans can receive a monthly pre-pay payment

to help offset the cost of sales tax. Still, many taxpayers would be paying more under the new

national sales tax system. If the sales tax becomes law, Congress may never have to increase

the rate above 30%. This is because it can rely on the Federal Reserve to increase the sales taxes

via inflation. Consequently, this inflation tax will increase the pain inflicted by the sales

tax on American people. The imposition of a national sales tax will lead to a flourishing

black market for many goods. This will cause the government to increase surveillance of our purchases.

It could also lead to government bureaucrats keeping lists of our purchases. This information

could be abused by government officials to embarrass and punish political enemies. The surveillance

could track whether an individual is complying with government dietary recommendations or is

consuming extremist content. A need to ensure compliance with the tax laws may also be used to

justify replacing cash with government issued and manage digital currency. The proposed national

sales tax rate is set at a high level because the bill's sponsor did not want to reduce the federal

government's revenue. A big problem with tax reform occurs when it fails to include reductions

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