Posted on 08/26/2004 11:05:33 PM PDT by n-tres-ted
Great work, as usual, AG!
"The federal government would be funded through a national sales tax on goods and services sold at the retail level.
Which will lead to the creation of co-ops by which people will collectively buy wholesale to skirt around the retail tax. This in turn will create tax shortfalls that will ultimately result in the return of the IRS while leaving the federal sales tax in place.
Think it won't happen? Think again."
Maybe, but if unnecessary and unconstitutional agencies, services, and programs were cut from the federal government, a tax revenue shortfall wouldn't be a problem.
You are right though, getting a tax repealed would likely be as difficult as getting a law repealed.
Nope, and the point is, many will see it that way, even if all these tax wonks make their case that it will work differently.
The truth is, even if it screwed me royally, if you could guarantee that the income tax would be REPEALED as part of it, I would go for it to save my children and grandchildren the tyranny it imposes.
But it will never fly. People in this country don't really want to be free, and they absolutely love class warfare and stealing from the "rich".
Why?
You don't need to Socratic Method me---I know what you're driving at. If an average car costs $XX,XXX, and consumers accept that and are used to paying that price, I don't think there's a way in hell every car manufacturer out there is going to reduce its retail price to .8 x $XX,XXX merely because it no longer has to pay "hidden" taxes during production. You really think one car manufacturer will break ranks and discount their product that much out of good faith? If so, you have more faith in a businessman's "morality" than I do.
Their products aren't manufactured in the US so the 22% drop in producer prices couldn't possibly be factored in to a drop in consumer prices.
Tell me how they would prevent tax fraud with the fair tax? Wouldn't it be a heck of a lot easier to hide your purchases than your income? The whole nation will become a bartering nation and the level of retail purchases will fade into oblivion. Someone educate me here.
If your implying that the majority of Americans want a sales tax exceeding 20%, you're blowing blue smoke out your posterior.
The 22% decrease you speak about is, BTW, a prediction.
The 22% decrease you speak about is, BTW, a prediction.Oh I know it's a prediction. I think it's a BS number for lots of reasons.
There has been virtually no discussion of the state income taxes, which would continue, along with Soc Sec and Medicare. In California, there is also mandatory State Disability Ins, which now covers "Family Leave" for bonding with your new child, which followed your planned pregnancy. I hate Family Leave. It taxes non-child producing employees for the intentions of others. BARF.
Based on the above, you would NOT get a 100% paycheck.
There are also dedections for insurance and 401's, etc.
Co-ops in Calif are NOT exempt from any applicable sales taxes on goods sold which are taxable in any other location or situation. Might be different in some states, but that is usually NOT the reason co-ops are created.
Co-ops allow bulk purchasing which brings down the initial cost of goods in the first place. Being a MEMBER of the co-op is like owning stock and getting a dividend. When profits are distributed to co-op members, they get more money in the form of a "dividend".
As a self-employed artist, have you been selling your stuff directly to the client?
If so, you are responsible for being registered with your state- if sales taxes apply-and COLLECTING sales taxes from your buyer on every piece you sell. AND KEEPING RECORDS.
If you are selling thru a gallery, sort of like consignment, then the gallery is processing the sales taxes when they handle the transaction for you.
If you are selling direct and not collecting sales tax and passing it on to the state, you may have a serious violation on your hands. Check with your CPA.
I do not understand all the hub bub about the rebate. Why is it so damn difficult to simply exempt food and housing?
You are so right. The more visible the tax, the better. The government should not be able to take our money by stealth, which of course is exactly what politicians prefer to do
Sorry patriot_wes, but I'll take real-world results any day over ideology and theory. And in the real world, the United States started the 20th century as being a minor world power, and by the end of it, we were THE super power. (Coincidently, the income tax began at the beginning of the 20th century.) Is that the result of having our money stolen by a corrupt government?
Now I'm not suggesting for a minute that the income tax is THE reason for this crazy success, but I am suggesting that it plays a part. There is cetainly no lack of rich or mega rich citizens coming into being in the last 100 years, and even the poorest in this country live better than the poor in most countries.
The system needs to be refined, not tossed.
Seriously, almost sprayed coffee on my keyboard with that one. Thanks for the laugh.
You would still save big in time and compliance costs. Also, lower prices; lower mortgage rates; no capital gains taxes; no tax on interest or dividends; no embedded taxes in our exports; more capital invested in U. S. production facilities. That is where we will get more high wage jobs.
If your case prooves to be correct, how about you and I pooling our resources and starting a car manufacturing business? I'm up for stepping through the door that will be wide open for us, how about you?
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