A FEDERAL SALES TAX: One Way to a Balanced Budget?

No proposed tax has been more bitterly opposed in the U.S. than a federal sales tax. Nevertheless, the Administration is studying such a tax as one of the few practical means left to get the Government out of the red. In spite of a $5 billion cut in the current budget, the U.S. is still running a $5.6 billion deficit. Worse still, the Government will soon lose $8 billion a year in present revenues, since it is committed to letting some emergency taxes die next year—the excess profits tax, the 10% emergency boost in personal income taxes, the temporary...

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