Is anyone considering the boon to business with all the corporate headquarters moving back to the US. With the US becoming a tax haven for the rich mucky-mucks... the economy will grow by leaps and bounds. Once that happens, the % of tax can be dropped.
. Once that happens, the % of tax can be dropped.
Presuming the Bush Administration is successful in making its tax cuts permanent, the % of tax can be dropped right of the bat. One of the rules of the game laid down by Bush is revenue neutrality.
The Fair TaxAct 23% figure for tax inclusive rate was set for revenue neutrality under the Clinton tax law. Revenue neutrality under current revenue collections targets a somewhat lower NRST rate as indicated by Tax Foundation's measures of effective federal tax rates as a percentage of Net National Product.
refer Tax Freedom Day 2004 PDF http://www.taxfoundation.org/sr129.pdf
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Total Effective Tax Rates by Level of Government |
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| Year | Federal | State | Total |
| 1997 | 21.8% | 10.3% | 32.1% |
| 1998 | 22.4% | 10.4% | 32.8% |
| 1999 | 22.5% | 10.4% | 32.9% |
| 20000 | 23.1% | 10.4% | 33.5% |
| 2001 | 22.2% | 10.5% | 32.7% |
| 2002 1 | 19.7% | 10.2% | 29.2% |
| 2003 2 | 18.5% | 10.1% | 28.6% |
| 2004 3 | 17.9% | 10.0% | 27.9% |
| Notes: Leap day is omitted to make dates comparable over time. Since depreciation is not available to pay taxes, GDP is an overstatement of spendable income for the purpose of measuring tax burdens. Depreciation is netted out of NNP. 0 Last year of Clinton administration when the HR25(Fair Tax Act) rate was estimated 1 Economic Growth and Tax Reform Reconciliation Act of 2001 Sources: Office of Management and Budget; Internal Revenue Service; Congressional Research Service; National Bureau of Economic Research; Treasury Department; and Tax Foundation calculations. |
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