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Analysis: GOP push for consumption tax
UPI ^ | August 2, 2004 | Christian Bourge

Posted on 08/02/2004 6:39:26 PM PDT by RWR8189

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1 posted on 08/02/2004 6:39:41 PM PDT by RWR8189
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To: RWR8189

Would be interesting to see how they will untangle existing 401k's (not yet taxed, to be taxed later) and Roths (already taxed, not to be taxed again)?


2 posted on 08/02/2004 6:43:17 PM PDT by GSlob
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To: GSlob

roths would be taxed at the consumption level...so so long as you are taking out post income tax income, you are getting the double whammy...but that is short term.

the up side is that 401's which were not taxed at the income level before will remain so forever...they will be taxed at consumption level.

but dont forget that if this happens, all of your income becomes the same as a 401k....no income tax.

this is a worthwhile trade off.

not to mention how much capital would flow into the us from socialist countries.


3 posted on 08/02/2004 6:50:55 PM PDT by ConservativeDude
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To: RWR8189
The majority pay little in income tax. Income taxes are heavily tilted towards higher income earners. I do not believe the lower income tax people which make up the majority will support an effective increase in their taxes.

It would be good for the country and good for me. But I don't believe it will ever happen.

The worst case scenario would be getting a Federal consumption tax and an income tax... That wouldn't surprise me... That would be very bad...
4 posted on 08/02/2004 6:51:29 PM PDT by DB (©)
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To: RWR8189
U.S. Sen. Arlen Specter, R-Pa., has backed a uniform 20-percent tax on earned income

Surprising.

5 posted on 08/02/2004 6:52:05 PM PDT by what's up
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To: GSlob

I've always favored (if thats the right word) a flat tax over a consumption tax since the latter seems to "punish" and discourage the very root of capitalism- consumption. A flat tax also takes away the Dems big modus operandi, wealth redistribution. But I'm open to ideas by someone who knows something about the subject.


6 posted on 08/02/2004 6:52:30 PM PDT by fat city (Julius Rosenberg's soviet code name was "Liberal")
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To: ConservativeDude
The trade off is NOT worthwhile: all your current (taxable) savings accumulated from after-tax income will be taxed again at consumption rate. So double whammy will be much more extensive, and will punish the thrifty, which is bad in and of itself. Shift to a flat tax rate within general framework of income taxation is much less disruptive, IMHO.
7 posted on 08/02/2004 6:58:19 PM PDT by GSlob
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To: what's up

Matsui is estimating 22% tax.


8 posted on 08/02/2004 6:59:42 PM PDT by Lokibob (All typos and spelling errors are mine and copyrighted!!!!)
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To: RWR8189

As long as they don't tax malaria, I'll be ok with it.


9 posted on 08/02/2004 7:05:09 PM PDT by thoughtomator (John Kerry reporting for duty - making sure that nobody interferes with Hillary's run in 2008)
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To: RWR8189
Aw, BS. Only a complete fool would believe this is going to happen. This is nothing more than an election year come-on to get conservative saps to the polls. After the election my guarantee is that you will hear nothing more of this.

PS If it is such a priority then why haven't they done anything in the past ten years the Republicans have run the congress?

10 posted on 08/02/2004 7:07:47 PM PDT by Last Dakotan
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To: dakine

Tax Ping...


11 posted on 08/02/2004 7:14:58 PM PDT by codyjacksmom
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To: Last Dakotan

There is the possibility that the deficits are so huge that income taxes fail to get us out of the hole. A consumption tax could ultimately raise more money than the IC because any figure under 100% could be levied. I pays to be skeptical when new taxes are proposed.


12 posted on 08/02/2004 7:20:40 PM PDT by meenie
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To: Last Dakotan
Aw, BS. Only a complete fool would believe this is going to happen. This is nothing more than an election year come-on to get conservative saps to the polls. After the election my guarantee is that you will hear nothing more of this.

Go back to DU you scumbag terrorist-supporting Libertarian voter.

Bush promised school vouchers and a privitized Social Security system and we got those didn't we? didn't we? errr maybe not.

13 posted on 08/02/2004 7:26:25 PM PDT by rmmcdaniell
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To: ancient_geezer

Tax reform bump


14 posted on 08/02/2004 7:33:39 PM PDT by phil_will1
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To: DB

"I do not believe the lower income tax people which make up the majority will support an effective increase in their taxes."

Payroll taxes are the most regressive element of the current system; many at the lower end of the economic scale pay more in payroll taxes than they do in personal income taxes.

The FairTax plan completely untaxes the poor by providing a rebate for all sales taxes up to the poverty level. Economic studies have shown that pre-tax prices would drop by 15 - 30% as competition drives out the cost of the current system from the pricing model. That means a 15 - 30% increase in purchasing power for those living at or below the poverty level.

The poor should be clamoring for the FairTax proposal. Too bad not enough understand it to do so.


15 posted on 08/02/2004 7:39:46 PM PDT by phil_will1
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To: Last Dakotan
If it is such a priority then why haven't they done anything in the past ten years the Republicans have run the congress?

They're still working on the Balanced Budget Amendment.

16 posted on 08/02/2004 7:42:30 PM PDT by Doe Eyes
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To: RWR8189

BTTT for a hopefully *VERY* exciting bit of news...


17 posted on 08/02/2004 7:43:43 PM PDT by ApesForEvolution (DemocRATS are communists and want to destroy America only to replace it with the USSA)
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To: fat city

Actually, the root of capitalism isn't spending money, it's making money.

An income tax is Marxist. A tax on spending is not.

Connect the dots.....


18 posted on 08/02/2004 7:45:57 PM PDT by ovrtaxt (The Fleet Center? Isn't Fleet an enema company?)
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To: RWR8189; Taxman; Principled; Bigun; EternalVigilance; kevkrom; n-tres-ted; Poohbah; CliffC; ...

Long an advocate of a national sales tax, a confident DeLay told a conference of tax lobbyists that House Republicans will have hearings and push the issue in 2005 and 2006.

He said that replacing the income tax, payroll and other related federal taxes would provide more money for people to use, and he endorsed a proposal from Rep. John Linder, R-Ga., for a national sale tax

As we stroll down memory lane ==> DeLay calls for national sales tax

A Taxreform bump for you all.

If you would like to be added to this ping list let me know.

John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:

H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.

Refer for additional information: http://www.fairtax.org & http://www.salestax.org


19 posted on 08/02/2004 7:46:34 PM PDT by ancient_geezer (Equality, the French disease: Everyone is equal beneath the guillotine.)
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To: rmmcdaniell

Ouch! ;)


20 posted on 08/02/2004 7:46:50 PM PDT by ovrtaxt (The Fleet Center? Isn't Fleet an enema company?)
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