I am starting this thread, as I do not want to hijack the thread on "Why people hate the IRS" (post # 77) I advocate the Automatic Tax. Saturn asked "Would you base it on income or consumption? If income, would you start taxing from a zero amount? If consumption, would you exclude things like food, housing etc.?" My answer is everything that is electronic - checks, ATM, credit cards is taxed. An yes, it would start with a zero amount. But the tax rate would be extremely low - thus it would not be a burden on anyone. And that would include business, churches, schools, non-profits ect.