Regarding the administration of the sales tax deduction you did not
have to save every receipt. Instead, there was a standard sales tax
deduction which could be found from a table that was based on income,
family size and the state sales tax rate. I don't know whether you
could also choose to "itemize" your sales tax deduction.
I agree that the typical citizen doesn't know about or understand
the implications of the sales versus income tax deduction. Political
entrepreneurs are aware of the issue although no one has yet made it a
big deal - perhaps in part because it is quite tricky - try selling an
income tax, even a revenue neutral one, to a state that doesn't
currently have an income tax!
Alex
--
Dr. Alexander Tabarrok
Vice President and Director of Research
The Independent Institute
100 Swan Way
Oakland, CA, 94621-1428
Tel. 510-632-1366, FAX: 510-568-6040
Email: [EMAIL PROTECTED]
