Posted on 02/13/2005 10:41:05 AM PST by nsmart
The FairTax is the non-partisan national sales tax proposal that would replace all federal income taxes. These include personal, estate, gift, self-employment, alternative minimum, capital gains, FICA, and corporate and death taxes.
(Excerpt) Read more at WWW.FAIRTAX.ORG ...
You just aren't willing to open your eyes. The savings you experience will be experienced by every single one of your suuppliers. Payroll taxes, compliance costs, tax planning costs, opportunity costs, ... lumber, framers, drywall, roofing, HVAC, ... landscaping... all will save in many areas. All of those savings will come to you in one form or another - then you will also take your own savings.
You aren't the only one who builds. There's nothing special about you or your situation. Why are there builders' affinity groups in support of this? Ever wonder?
Even if the evasion increases 4x, how does that hurt the economy?Legal businesses don't do as much businesses. And the rate would have to be higher meaning people making legal purchasers would be subsidizing other's criminal activity.
Are you claiming that in order to have the black market, the manufacturers would need no longer be doing legal business?
Because a 30% gross tax is far and above all the savings eliminating other taxes offers me. I would be lucky to save 1%. No kidding, all these reductions you talk about is less than 1% of my gross. Would you like to talk to all my employees and tell them I need to cut their wages by 30%? Then I have to convince all my suppliers to do the same. It just ain't happening. New Home prices will go up substaintially.
Is your position that your sales will decrease? Why?
Absolutely. People will be priced out of new homes and existing homes will be a much better value. The NRST will be a very painful transformation for the housing industry.
anyway, prebate is a made up word - did someone tell you it was an official word?. Someone (on these threads) came up with it to instill the idea that it was a refund paid in advance ...I'm sure if it weren't you would oppose it on that basis too...(eyes rolling)
Yes it is a demogrant. We know that. That is why some people use that word. (eyes rolling again).
It is defined as rebate. Whether you like that definition is another story. But it is defined as a rebate.
It is a rebate 1)because of the definition and 2) because any tax paid on spending below the poverty level is seen as an overpayment and is refunded.
Of course, if necessities were taxed you'd complain that necessities shouldn't be taxed.
No matter what, you'll complain. We all expect that.
"Because a 30% gross tax is far and above all the savings eliminating other taxes offers me."
I still don't see how your costs will increase. You have already acknowledged that your purchases for business will be exempt from the sales tax, therefore your cost will not go up.
"Absolutely. People will be priced out of new homes and existing homes will be a much better value. The NRST will be a very painful transformation for the housing industry."
Yes, the end price of the house may increase, therefore making the home buyer consider the sales tax as part of their purchase decision. This does not affect your cost of doing business, but it may affect your sales. However, keep in mind that home buyer should see their net income increase, therefore their buying power remains about the same as it was prior to the sales tax being added to the price.
In addition, I have seen many explanations on these threads regarding mortgaging the NRST and these explanations really addressed this issue. I'll let some of the other experts address that portion.....
Consider the illegal drug market. When so many people work in such an underground way, the only way to resolve conflicts is by force or intimidation. That's why drug dealers have regular shootouts, but drivers of Bud and Miller trucks do not. Black markets are natural human responses to taxes this high, and in that sense are positive because they deprive the government of revenue, but they are harmful to the human spirit and society in general because they make us act so sneaky and suspicious and more than a few become dangerous.
That is why I contend that your position is proof the cost of government is already higher than society is willing to bear. I agree with you on that point. If society is not willing to bear the cost of government, when they are aware of the cost, then reducing the cost (and scope) of government is the only answer.
How do you propose to accomplish this with the current system of hidden taxation?
I still don't see how your costs will increase. You have already acknowledged that your purchases for business will be exempt from the sales tax, therefore your cost will not go up.
I honestly give up. I don't know how I can make it any simplier or clearer.
Are you claiming that in order to have the black market, the manufacturers would need no longer be doing legal business?I don't understand your question.
anyway, prebate is a made up word - did someone tell you it was an official word?. Someone (on these threads) came up with it to instill the idea that it was a refund paid in advance ...I know it was made up to "instill the idea that it was a refund paid in advance." The problem is that isn't what the FCA is. It is not a refund paid in advance, but that's what the FairTaxers want everyone to believe, so they call it a "prebate." More marketing BS from the FairTaxers.
It is defined as rebate. Whether you like that definition is another story. But it is defined as a rebate.The bill could define it as swiss cheese, that doesn't make it so.
2) because any tax paid on spending below the poverty level is seen as an overpayment and is refunded.But you are giving some people back more than they paid. That's not a refund.
No matter what, you'll complain. We all expect that.And no matter what, you'll obfuscate, misdirect, and mislead. We all expect that.
It's a national sales tax and e-bay is domiciled in the USA. ALL e-bay transactions for new merchandise will be taxed by the NRST.
I never said that. You just assume that anyone who opposes your particular tax proposal has to be in favor of the current system or oppose lowering taxes.
Oh really?
From #280
...this so-called "prebate" means that everybody gets or at least is entitled to a monthly government check. We're all going to be on the government dole.
I'm opposed to socialism.
You connoted (some would say denoted) that the rebate funtion of the nrst was socialism. I didn't assume it. It clearly is not - and it now seems you agree - .
When and if your proposal is ever considered by those other that the True Believers, you are going to be in for a rude awakening.
Actually that is not the case. It's about 75% in favor for those who learn about it.
And if you know it's not going to happen, why are you so uptight about losing your status quo?
Because that is not tax avoidance it is tax evasion. The difference is about twenty years.
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