Analysis: GOP push for consumption tax

UPI ^ | August 2, 2004 | Christian Bourge

[Hank Rearden]

This is such a load of election-year crap. Entrenched political parasites, like the Republicans and democRats, have no intention of screwing themselves out of power or our money.

This'll disappear by mid-November, never to be heard from again, so we can concentrate on the War on Terrorismspending and the War on Drugsspending - For The Children.

[lewislynn]

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

No income tax but there is a tax on interest earned or paid over whatever the fed fund rate is, adjusted every month...not to mention the tax on any fees or services.

There's no free lunch and the whole purpose of any tax is to raise MORE revenue, not less.

[lewislynn]

This'll disappear by mid-November, never to be heard from again,

Untill next April when Congress has their hand in your pocket while blaming (their) IRS for your high taxes.

[scott7278]

"Why not simply go with the flat tax at 10% of the taxpayer's annual income? Consumption taxes are, by their very nature, regressive tax models that the sheeple will only tolerate for so long (once they realize that they're paying out over 50% of their annual wages in taxes while the wealthy are paying less than one-tenth of 1%)."

Where did you get that 50% figure from? The price of goods will not see an increase with the FairTax, there will be no federal income tax, and there will be no Social Security Tax. The end result is more money in the pocket!

For a self-employed person, he will be able to keep all the money that would have otherwise gone to Social Security -- it and Medicare will be fully funded under the FairTax. He will pay the same amount for goods that he did before, keep all of his money, plus he will receive a rebate check for the cost of essential goods up to the poverty line.

The rich will pay their fair share for what they buy, paying more when it's more expensive, and tax evasion will be held to a minimum. What's not to like?

[fire_eye]

sigh.... Somehow, I just KNOW I'm going to live my entire life squashed under the jackbooted heel of the IRS, only to see it get abolished when I'm too old to benefit from its demise.

It'll be just like being born in Russia in 1915; you've survived Lenin, Stalin, etc. etc., but by the time you get to see Communism crumble, you're 75 years old, and get to watch the kids tearing down the statues and partying in the street...

[Hank Rearden]

It's amazing how many people forget April 15th by November, isn't it?

And the Republicans just keep on jacking up the spending, budgets and deficits like crazy. Which, of course, they are.

[mastequilla]

No it wasn't.We've ALWAYS had a progressive income tax.

The initial income tax, if I remember correctly had only one tax rate.

[mastequilla]

And the Republicans just keep on jacking up the spending, budgets and deficits like crazy. Which, of course, they are.

There is a war on you know.

[WhiteGuy]

There is a war on you know.

Yeah, the war against the taxpayers.

The "war" you refer to, has nothing to do with massive increases in domestic pork and foreign welfare.

[mastequilla]

Yeah, the war against the taxpayers.

If you really think the Bush administration is waging a 'war against the taxpayers" then I'm sure the Kerry campaign would appreciate your support. I, for one, think the President is doing a fine job.

[Last Dakotan]

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

LOL, Yeah, woe to anyone who questions the efforts of the Republican party here.

[rwfromkansas]

Why hasn't anybody bothered to call the WH to see if Drudge is right about thet "domestic centerpiece" claim?

This is getting ridiculous.

All over a story with only info on what Hastert himself wants to do!

[kevkrom]

It just seems that a consumption tax also "cascades" from production to market. Help me out here.

That would be a VAT, not a sales tax. A VAT is levied at all stages of production (as such, income and payroll taxes operate in a VAT-like fashion), but a retail sales tax is only applies once: at the point of initial retail sale.

[grumple]

The Democrats will have none of this, I expect an assassination attempt...

[WhiteGuy]

"I, for one, think the President is doing a fine job."

I see.

So you, like the president, favor Ted Kennedy's world record pork laden "education" legislation?

Where on the idealogical spectrum does that put you?

I'd also challenge you to clarify your position that because our government is engaged in a "war" that there is justification for taking the earnings of hard working citizens and giving that cash to beggars both foreign and domestic.

[mastequilla]

I'd also challenge you to clarify your position that because our government is engaged in a "war" that there is justification for taking the earnings of hard working citizens and giving that cash to beggars both foreign and domestic

So you insist on using this forum to bash President Bush then? If you want to place yourself on the side of John Kerry then perhaps you've come to the wrong place.

[rmmcdaniell]

LOL, Yeah, woe to anyone who questions the efforts of the Republican party here.

Sheesh, I thought I made my sarcasm obvious at the end of the post. Oh well, maybe next time.

[Last Dakotan]

Sheesh, I thought I made my sarcasm obvious at the end of the post. Oh well, maybe next time.

I understood.

[fat city]

Here's a decent argument for a consumption tax vs. a flat tax:

Consumption Tax