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Greenspan backs tax revamp

Posted on 03/09/2005 12:51:53 PM PST by truthfinder9

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To: Conservative Goddess
Why do you believe that a sales tax will not work?

Have you stopped beating your wife yet?

21 posted on 03/09/2005 1:33:01 PM PST by Protagoras (If the Republican Party enacts a new tax they will be out of power for at least a generation)
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To: truthfinder9

22 posted on 03/09/2005 1:35:16 PM PST by Protagoras (If the Republican Party enacts a new tax they will be out of power for at least a generation)
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To: Protagoras
Greespan wants a new tax and keep the old tax.

You should have read the article more closely, he wants to phase in from an income tax to a sales tax, thought some want both systems *cough*democrats*cough*.

23 posted on 03/09/2005 1:36:37 PM PST by Paul C. Jesup
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To: Paul C. Jesup
Greenspan also said the tax panel will have to decide what type of system to use such as "a comprehensive income tax, a consumption tax or some combination of the two, as is done in many other countries."

You should have read it more carefully, bfore posting.

24 posted on 03/09/2005 1:42:57 PM PST by expatpat
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To: expatpat
Greenspan also said the tax panel will have to decide what type of system to use such as "a comprehensive income tax, a consumption tax or some combination of the two, as is done in many other countries."

Perhaps it is YOU who should read more carefully, Greenspan is NOT supporting both systems at once, but it stating the tax panel will have to decide.

25 posted on 03/09/2005 1:55:35 PM PST by Paul C. Jesup
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To: Protagoras

Greespan wants a new tax and keep the old tax.

I supposed there are some who would like to go along with income taxes and a VAT, from government's point of view that's a money machine that'll strip blood out of turnips and leave the skin to blow in the wind.

Your scheme is backfiring.

Mines right on target, up to you to scotch whatever ole Greenspan might be thinking about if it differs from below:

 

H.R.25

Fair Tax Act of 2005 (Introduced in House)
http://thomas.loc.gov/cgi-bin/query/z?c109:H.R.25:


  • HR 25 IH

    109th CONGRESS

    1st Session

    H. R. 25

    To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States.

    IN THE HOUSE OF REPRESENTATIVES

    January 4, 2005

    Mr. LINDER (for himself, Mr. DELAY, Mr. BRADY of Texas, Mr. CULBERSON, Mr. DEAL of Georgia, Mr. FLAKE, Mr. GUTKNECHT, Mr. KING of Iowa, Mr. KINGSTON, Mr. WESTMORELAND, and Mr. PRICE of Georgia) introduced the following bill; which was referred to the Committee on Ways and Means


    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 sales tax to be administered primarily by the States.

    • Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    • (a) Short Title- This Act may be cited as the `Fair Tax Act of 2005'.
    • (b) Table of Contents- The table of contents for this Act is as follows:
      • Sec. 1. Short title; table of contents.
      • Sec. 2. Congressional findings.

    TITLE I--REPEAL OF THE INCOME TAX, PAYROLL TAXES, AND ESTATE AND GIFT TAXES

      • Sec. 101. Income taxes repealed.
      • Sec. 102. Payroll taxes repealed.
      • Sec. 103. Estate and gift taxes repealed.
      • Sec. 104. Conforming amendments; effective date.

    TITLE II--SALES TAX ENACTED

      • Sec. 201. Sales tax.
      • Sec. 202. Conforming and technical amendments.

    TITLE III--OTHER MATTERS

      • Sec. 301. Phase-out of administration of repealed Federal taxes.
      • Sec. 302. Administration of other Federal taxes.
      • Sec. 303. Sales tax inclusive Social Security benefits indexation.

    SEC. 2. CONGRESSIONAL FINDINGS.

    • (a) Findings Relating to Federal Income Tax- Congress finds the Federal income tax--
      • (1) retards economic growth and has reduced the standard of living of the American public;
      • (2) impedes the international competitiveness of United States industry;
      • (3) reduces savings and investment in the United States by taxing income multiple times;
      • (4) slows the capital formation necessary for real wages to steadily increase;
      • (5) lowers productivity;
      • (6) imposes unacceptable and unnecessary administrative and compliance costs on individual and business taxpayers;
      • (7) is unfair and inequitable;
      • (8) unnecessarily intrudes upon the privacy and civil rights of United States citizens;
      • (9) hides the true cost of government by embedding taxes in the costs of everything Americans buy;
      • (10) is not being complied with at satisfactory levels and therefore raises the tax burden on law abiding citizens; and
      • (11) impedes upward social mobility.
    • (b) Findings Relating to Federal Payroll Taxes- Congress finds further that the Social Security and Medicare payroll taxes and self-employment taxes--
      • (1) raise the cost of employment;
      • (2) destroy jobs and cause unemployment; and
      • (3) have a disproportionately adverse impact on lower income Americans.
    • (c) Findings Relating to Federal Estate and Gift Taxes- Congress finds further that the Federal estate and gift taxes--
      • (1) force family businesses and farms to be sold by the family to pay such taxes;
      • (2) discourage capital formation and entrepreneurship;
      • (3) foster the continued dominance of large enterprises over small family-owned companies and farms; and
      • (4) impose unacceptably high tax planning costs on small businesses and farms.
    • (d) Findings Relating to National Sales Tax- Congress finds further that a broad-based national sales tax on goods and services purchased for final consumption--
      • (1) is similar in many respects to the sales and use taxes in place in 45 of the 50 States;
      • (2) will promote savings and investment;
      • (3) will promote fairness;
      • (4) will promote economic growth;
      • (5) will raise the standard of living;
      • (6) will increase investment;
      • (7) will enhance productivity and international competitiveness;
      • (8) will reduce administrative burdens on the American taxpayer;
      • (9) will improve upward social mobility; and
      • (10) will respect the privacy interests and civil rights of taxpayers.
    • (e) Findings Relating to Administration of National Sales Tax- Congress further finds that--
      • (1) most of the practical experience administering sales taxes is found at the State governmental level;
      • (2) it is desirable to harmonize Federal and State collection and enforcement efforts to the maximum extent possible;
      • (3) it is sound tax administration policy to foster administration and collection of the Federal sales tax at the State level in return for a reasonable administration fee to the States; and
      • (4) businesses that must collect and remit taxes should receive reasonable compensation for the cost of doing so.
    • (f) Findings Relating to Repeal of Present Federal Tax System- Congress further finds that the 16th amendment to the United States Constitution should be repealed.

 


26 posted on 03/09/2005 2:22:39 PM PST by ancient_geezer (Don't reform it, Replace it!!)
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To: Taxman; Principled; EternalVigilance; rwrcpa1; phil_will1; kevkrom; n-tres-ted; Zon; Bigun; ...
A Taxreform bump for you all.

If you would like to be added to this ping list let me know.

John Linder in the House(HR25) & Saxby Chambliss Senate(S25), offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:

H.R.25,S.25
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.

Refer for additional information:


27 posted on 03/09/2005 2:25:55 PM PST by ancient_geezer (Don't reform it, Replace it!!)
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To: Protagoras

"One popular idea is to craft a new code that includes both an income and consumption tax."

Just for grins, let's see how many people on this thread would support such a move.

Protagoras, how about you?


28 posted on 03/09/2005 2:51:31 PM PST by phil_will1
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To: ancient_geezer
H.R.25 and FairTax have been getting some play the last week or so in the letters section of the local paper. As happy as I would be to see income tax and the IRS go the way of the dodo, I think most people miss the necessary process.

The constitution prohibits a direct tax unless it is apportioned among the states by population. It took a constitutional amendment to get the income tax past that little detail.

Based on my understanding of a sales tax or VAT, I think it fails constitutional muster because of that prohibition. Of course the Supreme Court may disagree, ruling that, by definition, a sales tax is apportioned by population or, more likely, that it does not constitute a "direct tax." They have done sillier things in the past.

However, there is precedent that it takes a constitutional amendment to repeal a constitional amendment (remember Prohibition?). A simple law doesn't suffice.

Failing a constitional amendment to repeal the income tax, we would be left with 2 taxes.

And, contrary to what Greenspan says, that would NOT be a good thing.

29 posted on 03/09/2005 3:01:26 PM PST by Elric@Melnibone
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To: Elric@Melnibone

Based on my understanding of a sales tax or VAT, I think it fails constitutional muster because of that prohibition.

A direct tax is upon on owner merely for his ownership of property or a capitation levied on a persons existance per-se.

Any retail sales tax is an excise, an indirect tax levied on exchanges and activities of commerce and trade and fully authorised under Article I Section 8 clause 1 of the Constitution to be levied under rule of uniformity throughout the United States.

Constitution for the United States of America:

 

A LAW DICTIONARY
by John Bouvier, Revised Sixth Edition, 1856:

DUTIES.
In its most enlarged sense, this word is nearly equivalent to taxes, embracing all impositions or charges levied on persons or things;

A LAW DICTIONARY
by John Bouvier, Revised Sixth Edition, 1856:

EXCISES.
This word is used to signify an inland imposition, paid sometimes upon the consumption of the commodity, and frequently upon the retail sale.

 

Federalist #12:

A LAW DICTIONARY
by John Bouvier, Revised Sixth Edition, 1856:

"COMMERCE, trade, contracts
.
The exchange of commodities for commodities; considered in a legal point of view, it consists in the various agreements which have for their object to facilitate the exchange of the products of the earth or industry of man, with an intent to realize a profit. Pard. Dr. Coin. n. 1. In a narrower sense, commerce signifies any reciprocal agreements between two persons, by which one delivers to the other a thing, which the latter accepts, and for which he pays a consideration; if the consideration be money, it is called a sale; if any other thing than money, it is called exchange or barter. Domat, Dr. Pub. liv. 1, tit. 7, s. 1, n. "

Federalist #21:

 

[Montesquieu wrote in Spirit of the Laws, XIII,c.14:]

 

The Records of the Federal Convention of 1787
(Farrand's Records)
James Mchenry before the Maryland House of Delegates.
Maryland Novr. 29th 1787--
Appendix A, CXLVIa, page 149, S9.

"Convention have also provided against any direct or Capitation Tax but according to an equal proportion among the respective States: This was thought a necessary precaution though it was the idea of every one that government would seldom have recourse to direct Taxation, and that the objects of Commerce would be more than Sufficient to answer the common exigencies of State and should further supplies be necessary, the power of Congress would not be exercised while the respective States would raise those supplies in any other manner more suitable to their own inclinations --"


30 posted on 03/09/2005 3:23:43 PM PST by ancient_geezer (Don't reform it, Replace it!!)
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To: Elric@Melnibone

Failing a constitional amendment to repeal the income tax, we would be left with 2 taxes.

Repeal of the statute is repeal of the tax, period. Thus repealing the statutes of the income tax and instituting a retail sales tax for the use of consumption of goods and services merely leaves one tax not two.

A tax on income is merely allowed not mandated any more than any other mode of taxation.

As far as amending the constitution to get rid of the power to levy an income tax, yes that is something that should be done, and can be done given a political will and conditions that allow the amendment process laid down in Article V to go forward.

The catch 22, is Article V of the Constitution, and its 2/3rds vote of both housed of Congress to even propose and amendment, much less provide for 3/4ths of th states to ratify such.

As the last century under the income tax, with virtually continuous bills in place awaiting a vote in Congress, it is clear that as long as an income tax is on the books, there will be no movement forward for repeal of the 16th or prohibition of the taxation of income in any form.

Repeal of the income tax statutes and the replacement of the income tax with a viable Retail Sales Tax provides the political and practical environment to encourage the success of an amendment to remove the power of Congress to lay or collect income taxes. That however is not going to happen as long as any tax on income remains in the statutes of the United States.

The first step it to repeal the statute & put an alternative tax in place.

Only then can the second step of amending the consitution be successful.

31 posted on 03/09/2005 3:42:05 PM PST by ancient_geezer (Don't reform it, Replace it!!)
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To: phil_will1; Protagoras

"One popular idea is to craft a new code that includes both an income and consumption tax."
Just for grins, let's see how many people on this thread would support such a move.

LOL, French might like it, they'll surrender to anything, so I hear.

I haven't seen much in the way of popularity for both income and sales taxess anywhere around here.

Though there are some even here taken in by the "Flat Tax" which is indeed a wage plus subtraction method VAT, called by any other thing still smells as bad when yer nose gets rubbed in it.

So if that is what ole Greenspan is talking about being "popular" well, even scams occasionally are "popular". I for one don't by the "Flat Tax" scam.

How bout you, Protagoras? You supporting the income tax plus VAT known as a "Flat Tax?"

32 posted on 03/09/2005 3:53:32 PM PST by ancient_geezer (Don't reform it, Replace it!!)
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To: Protagoras

I read the Chairman's actual testimony, in addition to the news reports. He basically said two things
1. consumption taxes would stimulate the economy and increase the savings and investment rates, and
2. because of political considerations, it might be difficult to go completely to a consumtion tax system, so he urged the commission not to strive for "purity".

With all due respect to the Chairman, I think his economic judgement is clearly superior to his political judgement. He apparently is unaware that any move to layer a sales tax on top of the income tax would be fiercely opposed by the very people that would be needed to support any fundamental change of this sort.


33 posted on 03/09/2005 4:04:17 PM PST by phil_will1
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To: ancient_geezer

"I haven't seen much in the way of popularity for both income and sales taxes anywhere around here."

That was my point. That is why I said that Mr. Greenspan's economic judgement is apparenty ahead of his political judgement.


34 posted on 03/09/2005 4:08:34 PM PST by phil_will1
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To: Paul C. Jesup
....or some combination of the two, as is done in many other countries."

He's certainly suggesting it (agreed?), and Greenspan is normally so circumspect that that amounts to a support statement.

35 posted on 03/09/2005 4:14:42 PM PST by expatpat
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To: ancient_geezer
How bout you, Protagoras? You supporting the income tax plus VAT known as a "Flat Tax?"

I don't support taxes.

But I know policy wonks like you live to debate the alternate forms of theft.

Never getting at the real problem, you basically are endorsing the theft and just arguing about how to steal the money with the least discomfort to the victim.

"Bend over America, I promise this won't hurt too much".

36 posted on 03/09/2005 4:47:24 PM PST by Protagoras (If the Republican Party enacts a new tax they will be out of power for at least a generation)
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To: ptavares

Why treat the rich unfairly?


37 posted on 03/09/2005 4:50:51 PM PST by Chunga
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To: expatpat
He's certainly suggesting it (agreed?), and Greenspan is normally so circumspect that that amounts to a support statement.

He is not agreeing with it, he already stated in the article he would prefer a consumtion (sales) tax, he's just stating all the sides in that statement.

38 posted on 03/09/2005 4:58:16 PM PST by Paul C. Jesup
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To: phil_will1
He apparently is unaware that any move to layer a sales tax on top of the income tax would be fiercely opposed by the very people that would be needed to support any fundamental change of this sort.

They are setting the stage.

They are going to use you poor dupes to give Americans the shaft.

Perhaps they want to kill your plan so much that they will endorse it, fool with it, tinker with it and in the end, it will be totally different from that which you proposed in the first place and you will be forced to oppose it. They will then claim that the people don't want it and the whole thing will be abandoned and the status quo will prevail.

Your correct protestations that what you opposed is not what you proposed will not be on page six, they will be on page fifty six. In small type. They will be lost in the wind.

That is precisely what they are doing with the so called "Social Security reform". A simple concept which people agree with in principle (private accounts to replace SS) has been --cked up so badly that now most Americans oppose it. The absolute worst thing Bush could have done was press for these tiny, imbecilic accounts that can never be justified and will not solve the fundamental problem,,,,so that's exactly what he did.

Your scheme is as doomed as that one.

You boys don't get it, these guys are pros. They know politics, they know how to screw you over and make you thank them for it. You underestimate them, and they continue to manipulate and abuse you, and will forever.

The 2nd amendment was the founders answer to the question, and sadly, it will probably come to that.

39 posted on 03/09/2005 5:08:03 PM PST by Protagoras (If the Republican Party enacts a new tax they will be out of power for at least a generation)
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To: Protagoras

But I know policy wonks like you live to debate the alternate forms of theft.

ROTFLMAO, been called alot of things but never a "policy wonk".

Never getting at the real problem, you basically are endorsing the theft

Strange, I don't see a single thing you have managed to do for the "real problem"

A Century of of experience and rants by folks like you under the income tax, makes it clear that we will not get anywhere near smaller government from where we are (the income tax):

 


TAXES

 

and just arguing about how to steal the money with the least discomfort to the victim.

 

Patrick Henry, Virginia Ratifying Convention June 12, 1788:

 

Federalist #12:

Federalist #21:


40 posted on 03/09/2005 5:09:55 PM PST by ancient_geezer (Don't reform it, Replace it!!)
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