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To: scubadan
The cost of government would stay the same, but diferent people (consumers) would now be paying for the cost of govenment. Right now producers pay for the cost of government and the US is getting it butt kicked all over the world because it taxes production and enbeds that tax into every product and service.

We have huge comsumption in the USA and falling production. That needs to change and taxing consumption is a fine start. It also will tends to spread the pain of paying for government to people the people that drive up the cost of government but NEVER paid for government (non-producers) so I think it is fairer that an income tax.

77 posted on 08/02/2004 7:56:18 AM PDT by jpsb (Nominated 1994 "Worst writer on the net")
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To: jpsb
In theory, I agree with you regarding the NRST being fairer than the income tax. However, in the end I doubt the NRST would create the fairness everyone anticiaptes. First, regarding the underground economy, I don't believe a NRST will eliminate the underground economy. People who want to will still figure out a way to get around paying taxes if that's what they want to do. If your a tax cheat your a tax cheat regardless of the system. Unreported and bartered transactions will still evade taxation.

For a NRST to be fair, all individuals would pay proportionately based on their consumption. Do you think earned income tax credit recipients (the new welfare) aren't going to whine and scream when they loose their tax credit? Do you think low income taxpayers currently exempt from paying any tax won't do the same? Do you think politicians will ignore these screams and tax them fairly. I don't! Now you've either got sales tax exemptions, sales tax refunds or a new income tax on high (as yet to be defined) earning taxpayers. This will reintroduce compliance requirements and tax preparers. You can throw your fairness right out the window. Or you can say, "yea but it won't be me" but we can't even be certain about that.

I'm not saying our current system can't be improved upon. I'm just saying that waving a wand to change the income tax to a sales tax isn't the panacea everyone dreams it to be.

95 posted on 08/02/2004 9:09:08 AM PDT by scubadan (De oppresso liber)
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