Posted on 03/28/2004 5:56:36 PM PST by SamInTheBurgh
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 ...
WTF cares?!
They might actually have to go out and earn a living.....
As if this will ever happen. Great idea but won't happen. It takes far too much authority out of the hands of government. There will be enought turncoat GOPs that will abandon them on this. The dims will never give up the law enforcement arm of their party. LOL
The Fair Tax Bill contains a Constitutional Ammendment
Actually the constitutional Amendment has to be enrolled in a different bill, as proposed Amendments go through a much different process requiring house & Senate approval the ratification by the states.
The NRST legislation, H.R.25, calls for the proposal of a Constitutional Amendment in it's findings section to expressly prohibit all taxes on incomes,
The proposed Amendment can be found in the appropriate Joint Resolution form introduced by Sam Johnson's :
H.J.RES.61
Title: Proposing an amendment to the Constitution of the United States to abolish the Federal income tax.
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There's nothing fair about double taxation.
Changing to a consumption based tax means they are going to tax it again when you go to spend it.
I've got some bad news for you, you are paying approximately 12-25%(depending on particular industry) due to federal income & payroll taxes embedded into your purchases now.
As a point of fact with the repeal of business taxes that occurs with the implementation of the NRST and those taxes being removed will allow producer prices of products to fall about 22%, roughly the same as the NRST rate applied to purchases. Thus you will be paying no more than you do under the current system and you will have 100% of you gross income available to you besides.
The following article covers the mechanism on how the current Federal tax system propagates and is embedded into consumption expenditure.
DO YOU PAY YOUR INCOME TAX
AT THE SUPERMARKET?
by D. Sherman Cox J.D. L.L.M. Taxation
I also refer you to the section of the following article about the Income/Payroll tax system and its impact on our economy "A. Hidden Upstream Taxes. " paragraph 39.
"[39] Dr. Dale Jorgenson, Chairman of Harvard University's Economics Department, believes that the price of goods and services are inflated by about 20 percent or more by upstream taxes consumers ultimately bear. In a recent paper Dr. Jorgenson estimated the built-in taxes contained in the price of goods and services. /22/ In the chart above, he quantified the hidden component of tax, estimating that producer prices would fall on repeal of upstream taxes an average of about 22 percent."
Looking at the accompanying chart, the range of values from industry to industry appears to be about 12-25%.
Economists Gary and Aldonna Robbins of the Texas-based Institute for Public Policy examined the case of dry cleaning a shirt, with a particular eye toward uncovering the hidden costs of taxes in price.
The Robbin's attributed over 33.6% of "consumer prices" to be due to federal taxation passed on to the customer.
There's nothing fair about double taxation.
True, what do you propose to prevent it? Under the current or any other system that levies taxes on business assure that you get taxed on any money you spend. The current system insure that you will always be double taxed on even your earnings from the principal you have saved.
With the NRST, earnings from your investment are not taxed until spent those are only taxed once unlike now. The way to avoid a second hit on older principal, is to keep principal invested and use earnings from it only, and you will not ever incur that second second tax bite.
The second thing to consider is that under the NRST your gains will be higher due to not being taxed while invested, and you may trade such assets totally without any tax consequence maximizing your gains, being taxed only on that which you spend on new products and service.
Under the NRST, sell stocks, bonds or whatever investment vehicle you work with no taxes on capital gains, interest or dividends earned and can be re-invested free of taxation.
Under the NRST loan interest on your principal is free of taxes whether paying it or receiving it which is a tremendous advantage in purchases of more expensive items where mortgages or other forms of credit are used.
Click on the topic headings to view the AFFT's questions and answers for areas of concern about the NRST and its impact.
And go to the AFFT research webpage for access to more detailed studies and papers on these and other aspects of the NRST.
- What exactly will be taxed?
- How will the FairTax affect the various income brackets?
- How will the FairTax affect the costs of good and services?
- How will the FairTax affect my investments?
- How will the FairTax affect Social Security, seniors and retirees?
- How will the FairTax be collected and how will that affect the retail industry?
- How will we pass the FairTax?
- How will the FairTax reduce tax evasion?
- How will the FairTax affect federal government funding?
- How will the FairTax affect charitable giving?
Not only that, the the entire underground economy will be taxed. The drug dealers, the prostitutes and even the tourists from around the world will be paying the freight.
Also, the flat tax doesn't get rid of the IRS. You would still be subject to audits to prove your income. The consumption tax rids us of that insanity. But this plan also calls for everyone to get a 'prebate'. Each month EVERYONE will get a check to cover that month's taxes based on the poverty level. If they don't spend the whole rebate, they keep it as income.
Try to be optimisitc. Support for the NRST is growing quickly and is likely to soon reach a critical point, especially with DeLay pushing it to prominence on next Congress' calendar. As each Congresscritter comes on board, a few more start thinking that it might be time for them to make a stand, too.
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