What????
(1) it unfairly punishes sellers that focus on many small sales
A sales tax is a percentage. 7% of $100 is the same rate as 7% of $1000. If company A made 1,000,000 sales at $1 and Company B made 1 sale at $1,000,000 dollars they would both pay $70,000 dollars in sales tax. How is there anything unfair between Company A and Company B again?
it unfairly punished buyers that need to make any small purchases
No it does not for the same reasons as above.
it does nothing to stop people from just bulk purchasing things so they only every make one "transaction" per month or year (which will only further encourage conglomeration and other creative tax dodging).
Which is why sales tax is a percentage, not a flat amount like $1 per transaction. If that were really true Costco would be 1000 times bigger a company, you would pay for your utilities a year in advance (accounting for an average and receiving a rebate), and we would have refrigerators and freezers the size of Coliseums.
Its a percentage.
In short, there's a reason there's a focus on income and not transactions when it comes to taxation.
Yeah. It's called control. An active tax system that focuses on the People's income and not Corporations allows:
1) The IRS to be created.
2) To be FOUND GUILTY BEFORE INNOCENT, not in a court of the law, but by IRS employees that are allowed to know precisely DICK about your type of business and be completely incompetent.
3) A government entity with the absolute power to seize property, ruin lives, and generally act like complete asshats because of #2.
4) A government entity that rarely pays for its mistakes, while making the People dearly pay for theirs.
5) A government entity that is a complete coward and would rather get a court case dismissed than allow the creation of precedence which could be used by others to defend themselves.
6) A system of tax codes so ridiculously complex that the People, who are the most disadvantaged to understand it, can benefit the least from any knowledge that could be used to avoid 'higher tax liabilities'
7) A system of tax codes so ridiculously complex that the People, who are the most disadvantaged to be represented in their creation, that they are ultimately created by the wealthy, the powerful, and the Corporations. Those with money generally have the means by which to enjoy a substantially reduced 'tax liability'
8) The excuse to violate privacy and inspect the incomes, purchasing habits, and finances of the People.
9) The simple tool possessed by Government and the Influential to ruin lives, and put undue pressure on others to conform to whatever. A tax audit is a serious threat and damaging regardless of innocence. It costs time and money.
10) The ability for Government to gain an incredibly valuable information gathering tool for Intelligence without ever making it look like an Intelligence Gathering Tool.
Hmmmmmmmmmmmmmmmmmmm.................
Let's break down the alternative?
A consumption tax based system.
1) Corporations, not the People, bear the responsibility for compliance. Generally speaking, Corporations can afford tax services (already do), must be aware of the laws and comply with them (mostly so), and already bear the burden of compliance with so many other rules and regulations. Adding another one could hardly make a dent.
2) A passive system, as far as the People are impacted. When you consume something your tax is included. Nothing more complicated than that for the People.
3) Your finances and banking data become truly private again. Unless you are suspected of a crime you can enjoy your privacy in peace, which is what the Founding Fathers intentioned all along.
4) No organization exists that can take away your freedom and property again without due process and treat you as guilty before innocent.
5) To provide benefits for the poor simply do not tax food stuffs.
6) Make the People equal again with Corporations and the Wealthy. When somebody purchases a multi-million dollar private jet they will generate far more taxes than most normal people do in 10 years, instead of it being a write off and not taxed now. It will actually be fair. I could care less that a rich person ultimately pays more taxes, as long as the rate is the same.