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 ...
Current sales taxes, obstensibly, would be eliminated or reduced. Think Folks...throw out the current mindset of witholding. Think with all your earnings, not what you take home now. Also, eliminating all the hidden taxes would reduce the cost of goods. So those $25 shoes, would only cost you say, $18. The tax is also a one-time first purchase. No tax on resale of real estate, or used cars.
The tax is a percentage in addition to the cost of the item/service. The rate in terms used for sales taxes is 29.87%. So your $20,000 car would have $5,974 (29.87% x $20,000) federal sales tax added to it for a total of $25,974 (without state sales taxes.
Yes.
Ask the actuaries...
NEXT!
Yes goods would cost more, but you would also have more money because the income tax would be eliminated. A national sales tax has other advantages:
1. Eliminating the IRS (and the IRS's budget)
2. Encourage savings by taxing consumption instead of income
3. Eliminate double a triple taxations
This should be a no-brainer. The US in not in competition with Europe, the US is in competition with China and India. If we don't get onboard with sound fiscal policies those two countries will be looking at the US as a backwater the same we look at Europe as a backwater.
"Tell me what I'm missing."
Where to begin.
It's obviously 23 cents on the dollar. You really think that if you bought a 40 million dollar gulfstream jet, the government would only want 23 cents? How old are you?
Two words: Sam Walton
The general idea is good, but it has many problems just like the one you pointed out. Someone please answer these questions and I might support it.
1. Isn't 23% pretty high to be flat on all products?
2. How will I not be taxed again on the money I have saved?
3. Will the poor get a rebate or credit?
4. Will there be a guarantee that prices on products won't increase?
5. Will the 16th ammendement be abolished to ensure we won't be taxed with both in the future?
It's hard to believe this guy worked during the Reagan administration when you see him make a ridiculous statement like that.
Washington has a state sales tax (which varies from county to county because local sales taxes are added in), so the $20,000 car would end up costing close to $27,500. That doesn't seem like a real attractive proposition.
Bring in the heavies...I have a different mission today.
But as an American, I don't have to buy those shoes if I don't want to and I can retain every penny that I've earned through my hard work.Money is nothing without consumption. You might as well have Monopoly money. Unless you spend it, it's worthless. I don't see how we would be any freer holding a bunch of worthless paper because we don't want to the government to tax it over them taking it before you spend it. If you don't want the government to take it now, reduce your income (I'm sure your employer will be willing). You would be just as well off as if under a NRST you had earned it and didn't spend it.
Check the current percentage of taxation on your take-home pay. Bet its right around 30%. Now, add in the time it takes to fill out and file your return. Ain't you got better things to do with your time? Now, to simplfy things, manufacturers and producers would pay no tax on materials to produce or manufacture goods. Builders would pay no tax on building materials. The consumer would pay the tax at time of purchase. First purchase only. Resale of goods by purchaser would be exempt.
FICA taxes (SS and Medicare) are eliminated with an NRST -- it replaces payroll taxes as well as income taxes (and gift and estate taxes, too).
Well you are correct and we all realize that one way or the other we are going to have pay some kind of taxes.
But I like the idea of a national sales tax and I would support it.
I automatically question anybody that uses the Federal Mafia to enslave other Americans...not to mention in a way which is Constitutionally repugnant.
SS witholding is eliminated too
Really?
WOW, then no wonder the rate is 23 cents on the dollar! LOL
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