Posted on 12/01/2004 8:25:22 AM PST by Tumbleweed_Connection
Yes, think about that. Reducing the paperwork in employing people is very valuable in itself.
The idea of a national retail sales tax and the repeal of the 16th Amendment would have enough good effects that I am willing to accept what I believe are flaws in the proposal for the implementation of the Fair Tax.
What is the real chance that this will come to pass in the near future?
It depends on how the public debate is conducted. I'll give you two scenarios:
My guess is that 100 people that really understand the NRST and its relevance to producers and consumers versus the income tax and IRS would be enough to cover the country via town meetings. Basically two people in each state going from town to town/city to city.
Broadband Internet is the perfect place to have a huge town meeting. There's a few people just on FR that could do really well in a round table discussion. I'm sure there's many other blogs and forums that could do similar. The marketplace would push the best to the top and push them into wider areas of the Internet.
What are the chances? You tell me; how hard or easy was it for you to conclude that the NRST is the better choice -- perhaps the hands-down best choice? From what I've seen people that take the time and energy to become educated readily side with the Fair Tax.
You're exactly right. I put that fact out there early, so folks would understand. It would be a whole new world of finance if this ever gets rolling. We're only supposed to pay taxes on PROFITS anyway, and WAGES AIN'T PROFIT.
Well I'm convinced that the NRST is the ONLY way to go and must tell you that the only half truths and distortions I've observed on these threads have come from yourself and your cronies.
| Tax Incidence, Tax Burden, and Tax Shifting Who Really Pays the Tax Meanwhile, income taxes and other taxes on factors are assumed to be “passed backwards” to workers and owners of capital in the form of lower take-home pay and after-tax incomes from saving and investing. *** Snip *** The distribution of the corporate income tax is so uncertain that it is left out of most burden tables but is thought to be borne mainly by either shareholders (at least in the short run) or workers (in the long run, as capital adapts). These taxes are described as if workers, savers, and investors offered their labor and capital in totally inelastic supply, undiminished in quantity, when the tax cuts their compensation. It is assumed that they make no demand for an increase in compensation in response to the tax, so they swallow the entire burden of the income and other factor taxes that they pay. *** Snip *** In effect, the analysts pretend that producers can shift consumption taxes onto their customers but must absorb income taxes placed on their own earnings. Supply is infinitely elastic and infinitely inelastic at the same time. This is an inconsistent approach to tax shifting that is at odds with both economic theory and real-world experience. In addition, neither approach deals with any further adjustments that occur in the real world when taxes are imposed and resources are shifted in response from one use to another. |
No matching FICA payments. No paying accountants to do it for you.
My son, an economist, claims that there is tremendous economic activity happening on ebay which cannot be calculated into the national numbers. Consumer confidence, etc., was really higher than reported because most ebay activity was beneath the polling radar used by the government. Would the IRS move from auditing tax returns to monitoring ebay?
No more income tax withholding and estimated tax payments.
Yes, moving from an income tax to a national retail sales tax would could down on a massive amount of paperwork. Even if there are potential flaws in the proposal, the good almost certainly outweighs any downsides. And if the flaws are evident enough, we can go back and fix them.
PayPal, which ebay owns would probably integrate it into their business models. At 1/4 of one percent it would pay for them to collect and remit the tax to the government. Especially since it would be mostly hands of electronic transfers. It would be a good deal for ebay and its sellers.
My son, an economist, claims that there is tremendous economic activity happening on ebay which cannot be calculated into the national numbers.
And he is correct.
Furthermore, the tax rate of the NRST is based on the GDP:NIPA data series which only takes into account legitimate reported transactions of established business sales.
The NIPA data series excludes the commerce associated with tax evasion activities, underground cash economy and illegal trade hence the rate calculated is compensated for the tremendous amount of evasion and non reporting activity going on under the income/payroll tax system as well as illegal traffic going on.
In short, if anything the calculated NRST rate is on the high side of what is necessary, as the actual incentives to cheat fall under the NRST (23% maximum marginal rate of taxation) where the current system has marginal rates greater than 40% to profit from evasion.
Read ==> Tax Evasion: The Underground Economy
for a clearer picture on this issue.
Would the IRS move from auditing tax returns to monitoring ebay?
Actually no, as the IRS is totally disbanded and the adminstration of the national retail sales tax is turned over to the state tax agencies who have the experience and infrastructure dealing with retail sales taxes now.
What will happen is that state will continue what the already do now to assure their own tax collections in parallel with the Fair Tax Act provisions.
You can't feed your family from eBay.
It's been HR25 since it's first introduction.
It's been HR25 since it's first introduction.
Actually it was HR2525 in its first introduction back in '97 and in most sessions since.
It was recently that it became HR25.
must tell you that the only half truths and distortions I've observed on these threads have come from yourself and your cronies.Care to name one?
It's only been linked to 4 or 5 times on this thread.
Be sure to not leave out the caveats and hyperlink of that paper of yours, so folks can read it all, in context:Jeez, I put the entire section on the corporate income tax. That isn't context enough?
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