Posted on 08/01/2004 6:08:53 PM PDT by NeoCaveman
A domestic centerpiece of the Bush/GOP agenda for a second Bush term is getting rid of the Internal Revenue Service, the DRUDGE REPORT has learned.
The Speaker of the House will push for replacing the nation's current tax system with a national sales tax or a value added tax, Hill sources tell DRUDGE.
"People ask me if I’m really calling for the elimination of the IRS, and I say I think that’s a great thing to do for future generations of Americans," Speaker of the House Dennis Hastert explains in his new book, to be released on Wednesday.
"Pushing reform legislation will be difficult. Change of any sort seldom comes easy. But these changes are critical to our economic vitality and our economic security abroad," Hastert declares in SPEAKER: LESSONS FROM FORTY YEARS IN COACHING AND POLITICS.
"“If you own property, stock, or, say, one hundred acres of farmland and tax time is approaching, you don’t want to make a mistake, so you’re almost obliged to go to a certified public accountant, tax preparer, or tax attorney to help you file a correct return. That costs a lot of money. Now multiply the amount you have to pay by the total number of people who are in the same boat. You can’t. No one can because precise numbers don’t exist. But we can stipulate that we’re talking about a huge amount. Now consider that a flat tax, national sales tax, or VAT would not only eliminate the need to do this, it could also eliminate the Internal Revenue Service (IRS) itself and make the process of paying taxes much easier."
"By adopting a VAT, sales tax, or some other alternative, we could begin to change productivity. If you can do that, you can change gross national product and start growing the economy. You could double the economy over the next fifteen years. All of a sudden, the problem of what future generations owe in Social Security and Medicare won’t be so daunting anymore. The answer is to grow the economy, and the key to doing that is making sure we have a tax system that attracts capital and builds incentives to keep it here instead of forcing it out to other nations."
Is that an automatic feature? Because if the European model is any guide, once a tax is enacted, it never goes away.
The Fair Tax (HR 25) eliminates all federal income taxes, and also eliminates all federal payroll taxes, as well as estate and gift (death) taxes. House Majority Leader Tom Delay already is a co-sponsor of the Fair Tax, and I think Dennis Hastert will do so before long. Ways & Means Chairman Bill Thomas is very able and a long time believer in fundamental tax reform. Thomas gave the Fair Tax a letter a couple of years ago all but endorsing it. If anything, Thomas will make it even better. A number of Freepers have been working hard on this for a long time. A Freeper who comes to mind in times of progress on this vital subject is our champion and leader CHIEF NEGOTIATOR, may he rest in peace.
ROFL!
"AFGE (American Federation of Government Employees) is shitting over the possibility."
-- Being in the military, I'm technically a federal emplyee myself, and I LOVE THE FAIRTAX!
Federal employee unions are more left-wing than the teachers' unions. I say fu''-em!
Ach! This should be clearer:
...but the more one makes, the smaller the portion of one's total income is consumed in a year.
"I don't care who says or does what, congress critters will never vote to curtail their power or revenue."
“I discussed the importance of abolishing the income tax because of its tendency to form a habit of servility in the souls of a people that accept it. Servility of soul is bad not only in itself, it is also an open door through which will soon walk the abuses of ambitious government power. Leaders who find themselves with governmental power over a servile people will be quick to conclude that such a people exist to serve them.”
Alan Keyes “The Power of the Purse”, WorldNet Daily, August 27,1999
GOP, don't promise this unless you mean it. If you mean it, great!!!! If not, then put away the carrot.
That's assuming an undividual at $1m per year has the same lifestyle as the person who makes $100k. You and I know that's simply not true. While many do save a lot of it, most simply buy more expensive homes, cars, clothes, food, boats, trips, etc.
I guarantee you John and Theresa don't save. Why do they have any reason to save? They have enough money to make $30 million a year in tax-free bonds. They splurge.
"What would be the incentive to keep the current border?"
-- What border? We don't protect it as it is.
xxxlinton is really going to go nuts when he finds out he'll get to keep more of his money
The Fair Tax's chief sponsor John Linder tells a story of speaking about its provisions to a crowd in St. Louis. During Q&A, a question was asked about the likely opposition of the big CPA firms such as H&R Bloch. Linder added that would likely be the case. As the meeting ended, a nicely dressed man told Linder he was an EVP at H&R Bloch and they are very much for the Fair Tax Act (HR 25) because they would make much more money from the economic growth than they make on preparing tax returns. I certainly believe this; the growth in capital investment and additional job growth would be very substantial. Take a look at the economic studies at www.fairtax.org. Your husband and your family, I am convinced, will be much better off under the Fair Tax Act.
Certainly the biggest-ticket item, but if it is not built new, it is not taxed, no?
"The Fair Tax (HR 25) eliminates all federal income taxes, and also eliminates all federal payroll taxes, as well as estate and gift (death) taxes. House Majority Leader Tom Delay already is a co-sponsor of the Fair Tax, and I think Dennis Hastert will do so before long. Ways & Means Chairman Bill Thomas is very able and a long time believer in fundamental tax reform. Thomas gave the Fair Tax a letter a couple of years ago all but endorsing it. If anything, Thomas will make it even better. A number of Freepers have been working hard on this for a long time. A Freeper who comes to mind in times of progress on this vital subject is our champion and leader CHIEF NEGOTIATOR, may he rest in peace."
-- And don't forget that Tom DeLay is already officially on board. If the speaker and the majority leader are on board, most of the flock will follow.
Interest rates are determined by supply-demand forces and it is not clear that the assumption holds. In fact, it is not easy to say precisely what would happen, but I personally doubt that taxable rates will drop to nontaxable rates. I believe that previously taxable rates will drop substantially when they become non-taxable, but to a level higher than current non-taxable rates. And current non-taxable rates will rise slightly until they meet.
Actually, they won't meet, because if you could choose between a AAA insured municipal and a federal bond at the same rate, you would always choose the federal for liquidity reasons.
I know that in trying to sell an idea, you want to state it in the simplest terms possible, but I think that the discussion on what would happen to interest rates has been over-simplified and that my original concern on municipal bonds is valid, although slightly less magnified.
NRST yes. VAT no way in He!!
I went to London in 1990, the VAT tax at the time was 16%, on all purchases.
Add that to the sales tax in Ca, example, and that makes it 24 3/4% in Los Angeles, 24 1/2% in the rest of the state.
that is not yet addressing the state and local taxes. I'm not sure I like this idea.
Hi Taxman,
Looks like another piece falling into place. I can't wait for our President to make it a part of his campaign.
Very suspicious timing. It would be a great campaign issue! ~8-p
Correct. A new home is taxed, but not old ones. I've seen statistics on how the "established" rich spend in the same porportions as content middle-class Americans. The rich folks who save are up-and-coming small businessmen, our base.
Find a good tax accountant to work out an offer in compromise, which would result in the person paying a fraction of what they owe to settle their debt to the IRS.
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