Top Economist Says Tax Switch Simple, Fair

Kansas City Star ^ | Dec. 02, 2004 | MARTIN CRUTSINGER

[ancient_geezer]

A Taxreform bump for you all.

If you would like to be added to this ping list let me know.

John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:

H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.

Refer for additional information: http://www.fairtax.org, http://www.salestax.org & http://www.geocities.com/cmcofer/ftax.html

[crz]

They do this and I am gonna throw a drunken party for a month!!!!

[ApesForEvolution]

What a fantastic breath of fresh air and great accomplishment the elimination of the IRS/IRC will be...we will have freedom anew, a legacy of the GOP.

[Angry Republican]

ping.

[youngtory]

I'm taking economics and am currently using Mankiw's textbook.

[Texas Eagle]

How much does a case of your favorite beer cost?

[Radioactive]

They do this and I am gonna throw a drunken party for a month!!!!

Have your party before they change the tax laws.........because they'll tax your booze to the hilt!

There is no limmit to the size of the consumption tax when they put it into effect....it will get bigger...all taxes always do....

So don't get too happy for you may get what you want....and a lot more!

[konaice]

Mankiw said it was wrong to believe that a switch to a system that taxes what Americans spend rather than what they earn would amount to a radical change. "The current tax code, while nominally an income tax, is actually a hybrid of an income tax and a consumption tax,"
...
Individual Retirement Accounts and 401k plans have the effect of exempting savings from taxation and thus moving the tax base away from income toward consumption.

Interesting point.

[sonofagun]

That is, in effect, a sales tax imposed at each level of production of goods and services.

I never liked the idea of a VAT tax and never will. It seems that taxes can be hidden among various levels of production which the consumer will end up paying anyway.

National sales tax would be much more straight forward and that's something the parties can run their campaigns on.

[deaconjim]

I want to know which Republican is talking about a VAT? Time for a re-education seminar out behind the woodshed!

[ancient_geezer]

I'm taking economics and am currently using Mankiw's textbook.

Great, you are hired as a debate referee when the bean counters show, LOL ;O)

[The Mike Device]

Problem with a national sales tax is this.
When you want to exempt low income people from paying taxes on certain items, you must have a way to identify said people. Expect the ACLU to raise a fuss about the Idea of a "poor card" to begin with and furthermore, once you have issued your cards, whats to prevent the rampant fraud so prevalent in ALL other federal programs?

[konaice]

hidden among various levels of production which the consumer will end up paying anyway.

Clue: The consumer pays in the end in EVERY Tax system.

The only difference is the degree to which one is more or less regressive than the other.

[maine-iac7]

If our man, "W", had/did nothing else in 12 years - this alone would qualify him as one of the greatest presidents "freeing the people"

The IRS has become a KGB/Gestapo organization.

Look for the dems politicos to fight it. They use peoples IRS info, (illegally, to be sure - but that doesn't even slow them down,) for blackmail - keeping people quiet and in line.

[TFine80]

Well, plus one good benefit of the sales tax is that it hits people who hide their income and cheat on their taxes.

[crz]

They say that the 23% that is under consideration (10% income and 13% FICA) would be a vast increase. Not according to my income levels. Although I do pay the average on Social Security (about 14%) I end up paying about 8% in income taxes. Thats at an income of around 45,000. Then add the cost of the two CPAs I have to have to do our taxes..one for my corp taxes and the other for the personal which involves all those forms for those who are corp execs. It takes about 5500 bucks a year to fill out my taxes. You do the math..we pay about 8% and then 12% of 45,000 is 5400..so in fact we pay 34% in total if you add the CPA bills in.

I'll pay 23% any time. But NO to VALUE added tax! A one time collected National retail sales tax.

[FlJoePa]

I think under most national sales tax plans, everyone would get a check back from the gubbmint every month - for the same amount. This is to make up for NOT making exemptions for poor people.

If everyone gets a check for $100, the poor (or the thrifty) actually make money on the deal.

I say bring it on. Nothing can be worse than the current system. NOTHING.

[konaice]

When you want to exempt low income people from paying taxes on certain items, you must have a way to identify said people.

Wrong wrong wrong.

Everybody pays a national sales tax. Everybody.

The poor can file for a pre-fund (refund ahead of time).

Might be worth a trip overe to fairtax.org and find out what is being proposed.

[NJ Neocon]

VAT scares me. Why should I support it? Convince me.

What happened to a fixed (constitutional amendment) sales tax or flat tax?