Posted on 12/01/2004 8:25:22 AM PST by Tumbleweed_Connection
...President Bush and House Speaker Dennis Hastert (search) have both said the idea of a national sales tax deserves a serious look. For many, the idea of a world without the Internal Revenue Service is very seductive.
"We spend about $400 billion a year complying with the tax code. We spend $200 billion a year just filling out IRS paperwork," said Rep. John Linder (search) , R-Ga., who has proposed a bill that would create a national sales tax.
Proponents have spent millions on research and have concluded that a national sales tax can replace the income tax, payroll tax, estate tax and corporate tax. Advocates say the new tax would lower the cost of manufacturing and job creation and attract foreign investments, among other things.
"If we were to get rid of the sales or the income tax and the payroll tax and all compliance costs, we would be so ferociously competitive in a world economy that corporate America would not be competed with unless foreign corporations started building their plants in America," Linder said.
Proponents seek a 23-cent national sales tax on all retail goods, everything from groceries to clothes, cars to electronics. Everyone would pay the same rate, which critics argue is part of the problem.
"If you consume $40,000 a year and you make $50,000 a year, would you feel it is fair if a guy who made a half a million dollars a year but spent $40,000 a year paid the same tax you do? I think you wouldn't feel it's fair," said Buck Chapoton, former assistant treasury secretary.
(Excerpt) Read more at foxnews.com ...
Prove the lie! Where are you coming up with this extra 6%? You are assuming too many things, and you know what they say about people that assume.
We are not poor and I know that I would finish a major construction project we're working on just to avoid paying the sales tax later versus current sales tax rate. After that, we won't need to spend squat and can save everything. For us, it would be a windfall. But with this, I truly worry for my children.
I pity the young people starting out who need to buy houses, cars, etc. This would make it very difficult for them to start saving money, the real problem with the American economy. And forget it if you're living on a fixed-income or are social-security dependent. Adding 23% to the food, gas, and medicine that old people buy would finish them financially.
If you spend that money in savings now it will be taxed. If you die before you spend it, then it will be taxed(the death tax).
I like the idea of no federal taxes at all.
Interesting point on the sub-culture of bartering. I keep hearing that we would only pay taxes on new products and not used ones, but what stops someone from claiming that a used product is new. What if a product is created from recycled material. A black market sub-culture could emerge, and theft could increase. There is a lot of bugs in this idea.
The short and simple answer is yes you would be taxed on that money. Yet you will now be able to save more. Plus with prices going down, then you will have more purchase power.
HR 25 now.
Yes, tax on even state taxes or anything else included in the "gross payment".
The rate is "23% of the gross payment".
`(b) Rate-`(1) FOR 2005- In the calendar year 2005, the rate of tax is 23 percent of the gross payments for the taxable property or service.
Prove the lie! Where are you coming up with this extra 6%? You are assuming too many things, and you know what they say about people that assume.You're kidding, right? You've been going on and on about this plan and you didn't realize the real rate was 29.87%?
Anyone who thinks that this will REPLACE income tax is naive. If it gets passed we'll end up with both.
You invest money to make money to give you a greater standard of living.
Anyone who thinks what you say has not studied www.fairtax.org
You invest money to make money to give you a greater standard of living.How is your standard of living going to change without spending money?
what's on a web site and what the greedy buggers in washington do bear no relationship to each other. Politicians promises mean nothing when it comes to your money.
Source your proof?
>>>>Would I not be taxed again?
Yes, but as long as you are able to document your savings when the NRST goes into effect, I think a rebate/credit would be easy to implement. The difficult part would be that only the portion of already-taxed savings used for purchases would be eligible for a rebate/credit.
That site is blocked here at work, but I will study it when I get home. Just from all the reading here...it sounds complicated to understand by the common Joe like me. I'm not sure how popular this idea would be to the general public. We would probably have to see it work to finally accept whether it is a good system or not.
Exactly that is my point! Perhaps you do not understand what I mean by invest?
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