Posted on 03/25/2004 10:58:17 AM PST by ancient_geezer
Edited on 07/12/2004 3:41:32 PM PDT by Jim Robinson. [history]
WASHINGTON, March 25 (UPI) -- In a preview of the GOP agenda after the fall election, House Majority Leader Tom DeLay, R-Texas, says they are determined to repeal the federal income tax.
Long an advocate of a national sales tax, a confident DeLay told a conference of tax lobbyists Wednesday that House Republicans will have hearings and push the issue in 2005 and 2006.
(Excerpt) Read more at washingtontimes.com ...
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John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and payroll taxes outright, and provide a IRS free replacement in the form of a pure consumption tax:
H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.
Of course, Dims are without substance.
This is a wonderful opportunity, and I hope the Republicans don't squander it.
The game is called keep pushing, and don't let up on the whip or they will.
Pelosi of California refused to comment on the substance of the plan,
They haven't figured out how to spin against their finger in the wind yet.
Too many of their most important constituents want the income tax gone as much as we.
A EUro style Value Added Tax VAT in America?
No a visible, single stage Retail Sales Tax imposed on the purchaser of consumer products, not business purchaces, the direct opposite of a VAT.
Definition [ http://www.encyclopedia.com/articles/13330.html ]:
value-added tax
levy imposed on businesses at all levels of production of a good or service, and based on the increase in price, or value, added to the good or service by each level. Because all stages of a value-added tax are ultimately passed on to the consumer in the form of higher prices, it has been described as a hidden sales tax. Originally introduced in France (1954), it is now used by most W European countries.
Without further cutting income tax, the Russian model would be nice, a reasonable flat tax with a base cutoff?
The Russian Model is a full fledge EU VAT with multiple rate taxes on wages besides, that basic structure has yet to change with thier vaunted "Flat Tax":
RUSSIA: PART TWO OF THE RUSSIAN FEDERATION TAX CODE
August 10, 2000
Alexander Chmelev and Evgeny Astakhov
Baker & McKenzie, Moscow Office
Sent by BISNIS, U.S. Department of Commerce, http://www.bisnis.doc.gov
Judith_Robinson@ita.doc.gov, Tel: 202-482-2293. BISNIS sends this report as a courtesy to the U.S. business community. This is not to be construed as endorsement or sponsorship of any information or group.
On August 5, 2000, Russian Federation President Vladimir Putin signed into law four chapters of Part Two of the Russian Federation Tax Code and Federal Law No. 118-FZ ôOn the Implementation of Part Two of the Russian Federation Tax Code and Amendments to Certain Federal Laws on Taxationö (the "Implementation Law"). The chapters of the Tax Code signed into law by the President are Chapter 21 - VAT, Chapter 22 - Excise Taxes, Chapter 23 - Personal Income Tax, and Chapter 24 - Unified Social Tax. These four Chapters and the Implementation Law were officially published in Rossijskaya Gazeta on August 10, 2000, and, with few exceptions, will become effective on January 1, 2001.
The most sweeping changes introduced into the Russian tax system by this new legislation are as follows:
1. VAT (Chapter 21 of the Tax Code)
Although Chapter 21 of the Tax Code does not change VAT rates or the general VAT structure, it contains numerous provisions, which will significantly affect most businesses in Russia. Most notably, Chapter 21 substantially modifies the "place of service" rules, which generally determine whether for VAT purposes a particular transaction has occurred in Russia and is, therefore, subject to Russian VAT. Effective from July 1, 2001, Chapter 21 also will treat export sales to CIS countries in the same way as sales to all other foreign countries, and will exempt them from VAT. On the downside, Chapter 21 will repeal a number of long-standing and important VAT exemptions, including an exemption for license fees for the use of intellectual property (such as, patents, copyrights, and trademarks), and will significantly narrow the VAT exemption for pharmaceuticals.
2. Personal Income Tax (Chapter 23 of the Tax Code)
Chapter 23 of the Tax Code will replace the current progressive tax rates ranging from 12% to 30% with a flat tax rate of 13%. This 13% rate will apply to almost all categories of income earned by individuals who are Russian tax resident. A 30% rate will apply to dividends, and to any Russian source income received by individuals who are not Russian tax resident. A 35% rate will apply to income from gambling, lottery prizes, deemed income from low-interest or interest-free loans, certain insurance payments, and excessive bank interest.
3. Unified Social Tax (Chapter 24 of the Tax Code)
Chapter 24 of the Tax Code will replace the existing employersÆ contributions to four separate social benefit funds (which currently are imposed at an over-all rate of 38.5%) with one unified social tax. This unified social tax will have a regressive tax scale from 35.6% to 2% of an employee's salary with the lowest rate applicable to the portion of an employeeÆs annual salary in excess of 600,000 Rubles (approximately US$22,000 at the current exchange rate). It should be noted that under the Implementation Law, as a transition rule, the lower rate of this tax will be 5% rather than 2% during 2001.
4. Excise Taxes (Chapter 22 of the Tax Code)
As a countermeasure to reducing rates of other federal taxes, Chapter 22 of the Tax Code provides for an increase in excise tax rates for gasoline and other oil products by almost 300%. It also provides for a less dramatic increase of excise tax rates for tobacco products and certain passenger cars.
5. The Implementation Law
a. Turnover Taxes
Effective from January 1, 2001, the Implementation Law repeals the Housing Fund Tax of 1.5% and reduces the Road Users Tax from 2.5% down to 1% and completely repeals the Road Users Tax effective January 1, 2003. These taxes are imposed on gross sales and have been among the most onerous taxes on business in Russia.
b. Regional Tax Concessions
The Implementation Law reconfirms the right of regional authorities to provide tax exemptions for the regional portion of federal taxes retroactive to April 1, 1999. This reconfirmation resolves an issue that arose in 1999 as to whether the regional portion of profits taxes could be reduced pursuant to regional incentive laws.
c. Profits Tax Rate
Apparently in compensation to local budgets for the cancellation of turnover taxes, the Implementation Law authorizes municipal governments to introduce an additional "municipal" profits tax of up to 5% of a taxpayer's taxable profits. Thus the maximum overall profits tax rate may be increased from 30% to 35%.
This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)
I think most true conservatives can agree the onerous federal income tax needs to be gone. Further, I think most of us can agree the replacement should be either a flat tax or a sales tax (I prefer a sales tax as I spend little money). But IMHO, the really important issue is IMPLEMENTATION. How do we get from here to there? There are numerous obstacles to be overcome. How 'bout some detailed discussion of how rather than when?
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