Posted on 02/10/2005 12:05:05 PM PST by LincolnLover
Also nice to see him distort his way in an attempt to dismiss the Fair Tax, too.
(Sigh) There must be a way to unretire Bill Archer and put him back as chairman. I live in Houston, so maybe we can blindfold him and scoot him up to DC on the next flight (kidding, just kidding. Sorta.)
FYI.
Oh sheesh the latent mcainiacs on FR are getting an early start.
A VAT is the most hideous tax there is as all kinds of mischief can be played with it.
That's why they like it so much in Europe.
Tax PING
"During the retreat, Thomas revealed some of his cards. While transforming Social Security, he also would repeal the corporate income tax and replace it with a VAT paid by the consumer.
However, the lethal combination of a VAT and the present federal income tax that Thomas proposes always has been unacceptable to conservatives.
The ''fair tax'' -- repealing all income taxes and replacing them with a national sales tax -- has attracted 44 House sponsors and interest from no less than Bush and House Speaker J. Dennis Hastert."
Go, Bush & Hastert!
http://www.fairtax.org
So the Socratic method is setting up weak strawmen and knocking them down? He left out the part about taking home your entire paycheck plus a rebate equal to the sales tax on poverty level spending. A 30% (tax exclusive) or 23% (tax inclusive) sales tax rate would be a small price to pay for never having to deal with the IRS again.
The VAT just allows too many ways to hide Congressional favors - well it is a 25% tax on everything, except that the Florida delagation insists that it is only 10% on Florida citrus products.
Thomas is a maniac. The VAT is just a way to impose a sales tax while hiding how high it is from the end consumer.
I can't see the sales tax passing, because of stong opposition from those who have substantial savings from after-tax money (mostly middle-aged and older people). They would be taxed twice on this money -- once when they earned it, and now again when it's spent.
Also nice to see him distort his way in an attempt to dismiss the Fair Tax, too.
This doesn't make sense. The Fair Tax is a VAT.
No, it's not. The FairTax is a single-stage retail sales tax. The income tax acts more like a VAT than the NRST/FairTax ever would.
But don't forget that many, if not most retirees have the major part of their savings in 401K-s, IRA-s and pensions they rolled over into pre-tax account.
WIth the current system, as they take money out, it is considered income and is taxed.
So paying the sales tax wouldn't be any worse.
VATs destroy manufacturing jobs.
Rep. Thomas has a great idea. His purpose is to avoid the exemptions/rebates of the flat tax and "Fair Tax".
The current income tax kills more.
Actually that would be sweet not to pay income tax on Ira's. And don't forget, old people just don't spend like the young. I swear, my husband and I have everything, all we spend on is luxuries. We have a house, furnniture, appliances, we don't get new clothes or shoes alot, we just don't spend like we did as younger people.
(Sigh) There must be a way to unretire Bill Archer and put him back as chairman.
Don't we wish.
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(HR25) & Saxby Chambliss Senate(S25), offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:
H.R.25
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:
One who wants a Fair Tax is a McCainiac??
This doesn't make sense. The Fair Tax is a VAT.
Definition [ http://www.encyclopedia.com/articles/13330.html ]:
value-added tax
levy imposed on businesses at all levels of production of a good or service, and based on the increase in price, or value, added to the good or service by each level. Because all stages of a value-added tax are ultimately passed on to the consumer in the form of higher prices, it has been described as a hidden sales tax. Originally introduced in France (1954), it is now used by most W European countries.
The current income/payroll tax structure now in place is a subtraction method VAT, in that it is a levy imposed on businesses at all levels of production, it is passed on to the consumer hidden in the price of goods and services(more than 22%[the lowest estimate that prices would fall with enactment of the NRST] of the price of all goods and services), lower wages, lower returns on investment for investors, and higher interest rates(as much a 25% greater than they would be under the NRST).
OTOH; The NRST is a single stage(Retail), single rate(23%), visible to the consumer tax, on the "retail" sale of new(untaxed) goods and service. It is not a VAT and is expressly paid by the consumer not the business and is completely visible to the consumer by a receipt mandated by the law. The NRST does not tax purchases made for investment or business purposes.
Purpose of the NRST is to replace all Federal income/payroll taxes and gift/estate taxes with a single tax levied on all new goods and service once and only once at the retail level paid by the final consumer(the purchaser) of those goods or services. Goods that have been previously taxed under the NRST (i.e. used) are not taxed on resale.
The NRST is a specific remedy and replacement for the current corportate income/payroll tax combination we now pay in the form of higher prices and lower income(i.e. the corporate income/payroll tax). The NRST repeals over 95% of all Federal taxes currently in place and replaces them with one simple, easy to administer and understand, Retail Sales Tax.
How so?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.