Posted on 11/04/2004 4:56:55 PM PST by 20mm lib babies in city dumps
What is best for America is to tax consumption instead of production. If all taxes were from sales tax, those who pay nothing would start to pay their fair share. Drug dealers, hookers, illegal aliens and others working for cash would pay tax with every Ford or Ferrari purchased. We could have the same goods and services from the government and PAY LESS TAX after shifting all taxes from income to consumption. In addition, that would reward saving - interest and dividends would no longer taxed. The saving rate in the US is far too low and needs to be encouraged. Further, by abolishing the IRS, taxpayers would save both tax preparation cost AND not have to pay the salaries of IRS employees. The machinery to collect sales tax is already in place in almost every state. An additional percentage could be collected for the federal government at the same time it is collected for the state. Another important consideration is that by taxing consumption, imports would be reduced which would help our serious international balance of payments deficit which is threatening the strength of the dollar. If all taxation is concentrated at the retail level, it would reduce the cost of production which would help our exports even more, thereby further helping the strength of the dollar. Without income tax, the cost of hiring the same employee (after taxes) would be reduced.
The only remaining problem in this scenario is how to address is the collection of social security taxes. Employers could be required to direct deposit a fixed percentage of wage into an IRA account at any US bank in the name on the wage earner. Any withdrawal from this account prior to age 65 would be subject to direct payment by the bank to the federal government of some percentage as a premature withdrawal penalty. This way all people will have a real social security account IN THEIR OWN NAME. It will take a generation to have the existing social security accounts phased out while tapping into the sales tax revenue. After this is complete, all accounts will be discrete, safe, and not subject to political raids.
If I succeed, I'll put myself out of a job - I do taxes for a living - but the common good is more important, so I'm willing to fall on this live grenade in our foxhole. Any congressman or senator who you think may be receptive to this may contact me and I'll be glad to invest the time to develop the legislation with them.
I would also predict a drastic downsizing of the IRS with this type of tax code. And April 15th would be a day no more!
NO. Tax the imports, not income tax. Let the bloody Free Traitors pay for a change. Charging for consumption is a joke.
I AGREE 100% but get flames sooner or later everytime I mention it...LOL. Good post.
Taxing consumption is not a joke.,..but your idea is a good addition as well!
whatever is taxed we have to be cautious. Remember the luxury tax.
Also it is not uncommon to register pleasure boat puchases outside the USA to save tens of thousands in taxes for a few thousand in legal fees.
Not disagreeing with the premise, just pointing out a concern.
When the boat bought overseas arrives at the US port, sales tax will be due. Only commercial liners over certain tonnage would be exempt.
not quite. Pleasure boats are big enough business in FL. Setting up a Cayman Corporation is easy enough and keeping the boat out of the way for six months to avoid the taxes is quite simple.
It is done on paper in FL all the time.
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