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Shock and awe not only for Iraqis {The "Fair" tax cometh}
WorldNetDaily ^ | 4/16/2003 | By Joan Veon

Posted on 04/16/2003 7:28:39 AM PDT by George Frm Br00klyn Park

WorldNetDaily / Commentary

Shock and awe not only for Iraqis

Posted: April 16, 2003
1:00 a.m. Eastern

By Joan Veon
© 2003 WorldNetDaily.com

While jubilant Americans can't help but be fixated on "revolutionary" military operations they have witnessed on television for the past two weeks – called "Shock and Awe" – most are not aware that Americans are about to receive their own economic "Shock and Awe."

Many forget that while Rome burned, Nero was busy deflecting attention away from the real center of action. For example, the front page of the March 8 Washington Post featured a huge picture showing the burning of Baghdad with all but 5 percent of the front page devoted to the war in Iraq. However, at the bottom was the "bunker buster" which will shatter our own field of dreams here in America.

While the house voted well past midnight several weeks ago to approve the full tax plan of $726 billion, the Senate cut it by half when they voted several days later. While you may think this is not a sure thing, a recent editorial, entitled "Lay off the Tax Candy," in the Washington Post explained the deceptive game now being played. They said that there is some fine print in the Senate version that provides for some fancy footwork which gives them the ability to vote for the full amount, while making it look like they are against it.

Unfortunately, our government has not really made clear what this tax law is all about. From the extensive research I have done, I consider this proposal to be the most heinous change as it will destroy the ability of the middle class to sustain their economic power while enhancing the upper classes.

If enacted, this legislation, will deliver the final blow to the ability of "Joe and Jane Average" to get ahead. It should be pointed out that its title is a misnomer. This plan will not stimulate the economy but will cause much larger deficits, which will be borne by Americans as a result of the war, which is being waged.

Recently at the G7 finance ministers meeting, Secretary Snow, who likes to snow people, basically said that this increased deficit spending could be seen as a type of "capital spending" that most companies do when they want to expand. If it does not work, it is not the shareholder who has lost out, it is the entire populace of America. After the $4 to 6 trillion Nasdaq crash, most Americans who suffered any type of substantial loss are not looking to the market for answers.

The proposed legislation will, instead, change the entire tax code of America from a tax on income to a tax on consumption over a 10-year period. At this point in history, we are the only developed country not to have this form of taxation – which means Bush is globalizing our tax laws. In other words, he is harmonizing our tax laws and system to conform to what the major European industrial countries have. In my opinion, this basically will set the platform for a global IRS. By the way, the United Nations has been working on these kinds of ideas for the last 30 years.

Under this VAT (value-added tax), every time a purchase is made, there will be up to a possible 27 percent tax on it. This tax could replace the tax on income, making only consumption taxable while all forms of income are tax-free. There are some countries that have a value-added tax plus a tax on income while America is the only country without a VAT, but has a tax on income.

For those who have enough savings to live off of their income, this is a windfall, but for those who have only debt with little or no savings, this will create a financial burden equal to the Israelites having to make bricks without straw.

At the heart of this plan is the elimination of tax on corporate dividends. Again, if you obtain your living from stock dividends, this will be like going to heaven. No tax on income – only a tax on what you buy. Let's look at three different sets of individuals.

First we have Old Money Harry. He has never had to have a real job because he gets his living from the family trust. All of the family assets – the fabulous house, the cars, the summer homes, the yacht, the Mercedes and Rolls are held by the family trust, along with title to three large commercial pieces of real estate. Harry made several killings buying and selling real estate because the gains were tax-free since they were inside the family trust. The only downside is that the income from the trust is taxed.

However, under the proposal to reduce tax brackets – which is necessary in order to make the rates flat – from 38 percent to 21 percent, it won't hurt as much. Harry will have 17 percent more to spend. Only what you buy will be taxed – however, if you have it in a trust, no tax. Old Money Harry will achieve growth unsurpassed under the proposed tax-stimulus plan, just like the Kennedys, the Rockefellers, the Mellons and anyone else with this arrangement.

Next are John and Jane Middleclass. Both have reasonably good jobs with attractive incomes. They both have advanced degrees and live in the "executive home" to match their rising social status. They lease a Lexus and Jaguar and think nothing of packing up and going to Vale or to the Bahamas at a moment's notice. They have re-financed the house several times to add a new wing, exceptional landscaping and a pool.

While they know they are basically spending everything they are bringing in, they rationalize by thinking about the rising equity in their home and how much they will be able to cash out when they retire. Unfortunately their 401ks got zapped during the NASDAQ crash.

Donnie and Susie Squeeze are 25 years old. Donnie served in the military and works as a mechanic for the local Honda dealer. They have three small children and Susie works part-time at the local grocery store. They are saving for a down payment on a home and hope to send their kids to college if they can afford it. Right now they are just barely making ends meet.
============


In order to explain the proposed tax stimulus program, let us take a look at who will come out like a bandit. Old Money Harry will be able to double his assets because he has the right tools: a pile of money and a trust. He will basically pay very little tax considering his income and assets. The stock dividends will be tax free, and other sources of income may be tax free, depending on if he takes advantage of the new Lifetime Savings Accounts.

Joe and Jane Middleclass will experience some drop in tax on income. However, once the proposed stealth tax is in full force, they probably will not have any tax break from the mortgage interest expense because it had to be sacrificed in order to pay for the other parts of the tax package. Since they have no savings outside of their 401ks, they won't have any benefit from the tax-free sources of income.

But because they like to spend, they will pay 21 to 27 percent every time they make a purchase. There is no doubt their spending habits will change. If the economy tanks and one of them gets laid off, they might have to sell the house. If the economy is not doing well, who will buy their house and at what price?

Donnie and Susie Squeeze are about to be squished. Their tax bracket will have to rise in order to help pay for the new tax law, but since they have very little savings they really won't feel the benefit of tax free dividends and investment income. Since they are still accumulating, every time they buy a car, a dishwasher, etc., they will pay a hefty consumption tax.

Unfortunately, the thought of buying a house might be out of the picture since it too will have a 21 to 27 percent tax. Depending on whether the U.S. can stimulate the economy enough to pay for the war, they may be on the hook for the cost of war.


Lastly, it's time to examine what George Bush stands for, because it appears he is trying to harmonize our tax laws with the other countries of the world. There has been no clarification – let alone an announcement – that the Bush administration is changing the tax code. Why keep truth from the American people? What happened to the country that the colonists fled to from the British and European feudalistic systems?

THIS article at WorldNetDaily


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Extended News; Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS: axixofevil; freetrade; nwo; taxreform; taxreformthreads; wareconomy
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Comment #161 Removed by Moderator

To: Always Right
It is the individual who is liable for the tax.

This much should be obvious. It is the individual who pays the tax.

However, it is the business who is liable for showing that the tax has been paid, NOT the individual. Further, the business is paid for this service under the nrst.

162 posted on 04/17/2003 12:26:48 PM PDT by Principled
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Comment #163 Removed by Moderator

To: Dick Bachert
Uh, the new excise tax bureaucracy would be in addition to the sales tax bureaucracy...I made the false assumption you had enough knowledge of the sales tax plan to know that.
164 posted on 04/17/2003 12:45:27 PM PDT by lewislynn
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To: Principled
However, it is the business who is liable for showing that the tax has been paid, NOT the individual. Further, the business is paid for this service under the nrst.

Here is a link to one of the most recents NRST bills up for consideration. Notice that it is solely the individual that is punished.

165 posted on 04/17/2003 12:47:11 PM PDT by Always Right
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To: Always Right
Link is only temporty, here is the text:

`SEC. 505. PENALTIES.

`For interest due on late payments, see section 6601.

`SEC. 506. BURDEN OF PERSUASION AND BURDEN OF PRODUCTION.

`SEC. 507. ATTORNEYS' AND ACCOUNTANCY FEES.

`SEC. 508. SUMMONS, EXAMINATIONS, AUDITS, ETC.

`SEC. 509. RECORDS.

`SEC. 510. TAX TO BE SEPARATELY STATED AND CHARGED.

`SEC. 511. COORDINATION WITH TITLE 11.

`SEC. 512. APPLICABLE INTEREST RATE.

`CHAPTER 6--COLLECTIONS; APPEALS; TAXPAYER RIGHTS

`SEC. 601. COLLECTIONS.

`SEC. 602. POWER TO LEVY, ETC.


166 posted on 04/17/2003 12:49:41 PM PDT by Always Right
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To: Always Right
Your link doesn't work.

In HR 25, the "Fair Tax", it is the BUSINESS who is liable for being able to prove the tax has been paid, NOT the individual. That's one of the basic, fundamental pillars of the bill.

I have no idea what bill you're trying to link.

167 posted on 04/17/2003 12:51:33 PM PDT by Principled
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To: Extremely Extreme Extremist
EEE, some comments on your post.
1. Manufacturers don't pay taxes on raw materials that are destined for products. These materials are exempt. If you are implying that the income tax that the producer paid is included in the cost of the raw material, you are correct.
2. Same comment about taxes on products sold to sellers.
3. Only state and local taxes are levied on products being sold to consumers.
4. 1, 2 and 3 do not account for excise taxes, which are another animal entirely.
5. Under the NRST, how do you deal with the black market? 20-30% savings is quite an incentive for sales outside the government's control. I believe this is an issue in countries with VATs much lower than 20-30%.
6. The gradual payment (payroll deduction) plan is, IMHO, what got us into the tax mess we have now. If people had to write a check to Uncle Sam every April 15th for the entire amount of taxes they owe their would be a tax revolt in this country immediately. If I have to hear one more idiot tell me "the government had to refund $x to me" as if it were a good thing I may be in jail soon.
7. In the past 20 years my state has more than doubled the sales tax. How, by billing the increases as "only 1%", "only a penny", etc. How would you prevent this with NRST?

My solution (for all to take shots at) is a flat tax, no deductions (the famous "postcard" tax return"). All taxes are due the day before the general election date in November. That keeps the tax rate and election tied in everyone's mind, with instant feedback to the elected officials. Again, IMHO, that is the best way to get lower taxes rather than higher.
168 posted on 04/17/2003 12:52:30 PM PDT by 3Lean
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To: Zon
With the NRST if a person doesn't want to pay the tax they can choose to not buy the item -- and they can still get a check every month to cover the tax up to the poverty level

Is getting a welfare check every month supposed to impress me? Where does that money come from?

169 posted on 04/17/2003 12:52:30 PM PDT by lewislynn
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To: Taxman; ancient_geezer
more attempts at misinfo...
170 posted on 04/17/2003 12:54:42 PM PDT by Principled
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To: George Frm Br00klyn Park
NRST...It is DESIGNED to put the onus on those who are starting out, and must buy EVERYTHING in order to JUST get by.

If you exempt food, clothing and shelter from the tax, then the onus would not be on those people, who spend some 90% of their income on these items.

171 posted on 04/17/2003 12:58:54 PM PDT by kevao
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To: lewislynn
Is getting a welfare check every month supposed to impress me? Where does that money come from?

The REBATE is not welfare, as welfare is transferred from other individuals. A REBATE is money already paid. Folks who receive the rebate are just receiving the money they'll pay in taxes on necessities. It's not a transfer from any other individual....it is money paid back to yourself...just like any REBATE. Look it up.

172 posted on 04/17/2003 12:59:07 PM PDT by Principled
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To: Always Right

And shove it up your ass while you are at it asshole.--Always Right

ROTFL!!!

That is absolutely hilarious -- a real gem. No wonder you're always right.

173 posted on 04/17/2003 1:07:05 PM PDT by Zon
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To: JohnGalt

Libertarian don't get elected, why would I read their platform?

You said you lean libertarian, so naturally I thought you knew the platform. As I said, I'm not a libertarian, but I have read the platform. Libertarians do get elected, so your wrong on that count.

Zon: The flat tax involves government initiation of force and or threat of force -- "report your income and pay the tax or we'll fine you and put you in prison".

That is the visceral hatred I think could be tapped over time to return us to a pre-1913 American republic free from the DC tax regime; a return to true federalism.

The graduated income tax and flat income tax feeds that "visceral hatred" because they both sanction the initiation of force and threat of force against taxpayers. The national retail sales tax (NRST) doesn't feed it it eliminates the sanction.

These days I lean rather Jeffersonian I guess.

"No man has a natural right to commit aggression on the equal rights of another, and this is all from which the laws ought to restrain him." -- Thomas Jefferson

For what it is worth, NST advocates semm more interested in abolishing the IRS than destroying the DC tax regime.

It's the national retail sales tax (NRST), not national sales tax. There's a very big difference, but you already know that. Your opinion is noted.

But if you eliminate the collection at the docks and just slap a tax on it, the power of the Fed will grow as monetary policy will determine the price of imports.

Tax reform is not the end all be all. Tax reform is but one of five key components to resolving the leviathan-government problem.

174 posted on 04/17/2003 1:08:01 PM PDT by Zon
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To: lewislynn

Is getting a welfare check every month supposed to impress me?

It's not a welfare check. It's a way to recover the tax that must be paid on necessities, like food and medicine, which aren't taxed now, up to the poverty level for each household. A 23% percent retail sales tax on necessities would be far to heavy a burden on the poor thus the reason for the tax probate check. It's not a welfare check and it has been explained to you several times how and why it's not a welfare check. It makes no difference to me how you chose to present yourself -- it's your credibility, not mine.

You're the one person on the tax threads that has, by far, most discredited themselves. You're the undisputed champion, lewislynn.

175 posted on 04/17/2003 1:30:22 PM PDT by Zon
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To: Zon
That is absolutely hilarious -- a real gem. No wonder you're always right.

Thanks, too bad it was deleted as was the post that prompted the well deserved comment.

176 posted on 04/17/2003 1:48:27 PM PDT by Always Right
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To: Always Right

Thanks,

Ahem, breaking the rules of the person's "living room" (forum) you've been invited into and "crapping on the floor" (making a blatant personal attack against another guest) is not something to be applauded. I wasn't applauding you -- scorn or ridicule perhaps, but applauds or praise, most certainly not.

177 posted on 04/17/2003 2:00:33 PM PDT by Zon
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To: Zon
Z, Joe and Jane "Sixpack" don't influence politicians. Millionaires do. If people making millions of dollars had to pay the same rate as on their income, they would be clamoring to get that rate lowered. While sipping their favorite beverage, under the NRST, they would probably talk about the government supplied amenities we "all" should have. Concert halls, museums, ballparks and arenas, race tracks, etc and conclude that the tax rate needs to be raised. It's already happened. It caused the Boston tea party. Your utopia just don't exist. Peace and love, George.
178 posted on 04/17/2003 2:02:04 PM PDT by George Frm Br00klyn Park (FREEDOM!!!!!!!!!)
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To: Zon
A personal attack prompted my personal attack, buddy.
179 posted on 04/17/2003 2:10:45 PM PDT by Always Right
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To: Zon
I have yet to find one of you NRST zealots who do not engage in personal attacks. Everytime someone comes in and suggests an opposing opinion they are personally attacked. So get off your hypocritical high horse.
180 posted on 04/17/2003 2:12:42 PM PDT by Always Right
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