Posted on 02/18/2005 8:53:25 AM PST by phil_will1
THERE THEY GO AGAIN! President George W. Bush and the Republican Party are determined to overhaul the tortuous federal tax system just in time for both the 20th anniversary of Ronald Reagan's 1986 tax act and next year's mid-term elections, which could see both parties fighting over large numbers of open seats. Bush promised in his State of the Union address to deliver a tax code that is "pro-growth, easy to understand and fair to all." The current code is so ponderous that it is driving an alarming number of taxpayers to underreport their incomes or not report incomes at all. Experts estimate that uncollected taxes have grown to about $400 billion per year from $311 billion in 2004 and $127 billion in 1998. As simple as Bush's promise sounds, it represents one of the more lofty goals ever set by a president for his second term. For the tax system is so complex that whenever you tug on a tiny thread, you risk unraveling the garment. Every proposed change to the current system could create a distinctive set of winners and losers -- and the potential losers often are politically connected. Another hurdle: The President wants any reform to enshrine his past tax cuts, even as Democrats argue that those cuts were irresponsible in light of the $427 billion federal budget deficit. In fact, they blame the cuts for that deficit. To top it off, Bush is waging this attack on the tax code while simultaneously overhauling Social Security. Despite the many obstacles, Barron's predicts that Bush & Co. will succeed in modifying the tax system by the end of 2006.
(Excerpt) Read more at online.barrons.com ...
Tax reform ping
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,S.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:
Would someone be willing to freepmail me a login?
go to www.bugmenot.com
I didn't like John Breaux's comments the other day-stating perhaps the best solution was some sort of "blend" of both Flat Tax AND Sales Tax. Lindners bill repeals the payroll/income tax FIRST. Then institutes NRST. I think we need to be cautious of any sort of "hybrid."
Thanks for that link. That's pretty cool. (It didn't work with barrons, but I'll bookmark it for other things!)
Yes, that will mean almost unlimited taxation down the pike.
I think we need to be cautious of any sort of "hybrid."
Absolutely agreed on that. Leaving any vestige of the income tax in place defeats the primary points of going to an NRS, those of simplicity, visibility and above all putting distance and a buffer between the federal tax bureacracy and the individual. Tax reform is not about how to make government more powerful, it is about Liberty and privacy of the individual and empowerment of the electorate.
"A hand from Washington will be stretched out and placed upon every man's business; the eye of the federal inspector will be in every man's counting house....The law will of necessity have inquisical features, it will provide penalties, it will create complicated machinery. Under it men will be hauled into courts distant from their homes. Heavy fines imposed by distant and unfamiliar tribunals will constantly menace the tax payer. An army of federal inspectors, spies, and detectives will descend upon the state."
-- Virginian House Speaker Richard E. Byrd, 1910, predicting the consequences of an income tax.
must end.
"...I think we need to be cautious of any sort of "hybrid."..."
We need to be more than cautious. WE MUST OPPOSE THAT SOLUTION IN THE STRONGEST POSSIBLE TERMS. That's no solution at all......just opens another pocket to be picked. All or nothing......none of this foot on the dock and on the boat. We'll all get soaked if we allow it.
Access to the Barron's articles requires a subscription to the magazine.
www.bugmenot.com is going to help much in that one.
The current code is so ponderous that it is driving an alarming number of taxpayers to underreport their incomes or not report incomes at all. Experts estimate that uncollected taxes have grown to about $400 billion per year from $311 billion in 2004 and $127 billion in 1998.
>>>
No kidding? Free the American people from Federal IRS/IRC Mafia tyranny and pass the FAIRTAX! Or the JBTs could throw millions and millions of Americans in prison...or whatever.
Ahh, OK. I have seen bugmenot give logins to some pay sites.
"I didn't like John Breaux's comments the other day-stating perhaps the best solution was some sort of "blend" of both Flat Tax AND Sales Tax."
Agreed. Support for a sales tax would drop off precipitously (sp?) if it were proposed as an additional tax, instead of a replacement.
The public discussions are happening now without prompting.
THere is progress.
I can't wait for the first time it's debated on the House floor. Talk about making a clear distinction - where do you thing Zell would vote!
Here's another portion.
"The House of Representatives could beat Bush to the finish line. Georgia Republican Congressman John Linder, who champions a national sales tax, tells Barron's that the House Ways and Means Committee may schedule hearings on tax reform as early as March. Linder, who has been discussing his plan with his party's congressional leaders, expects the full House to have a menu of options to act upon by August. He thinks the House will move on tax reform before it moves on Social Security reform because tax reform could alleviate the retirement system's funding problems by raising more money. His sales tax, for example, would capture money from people who dodge the current tax system. The Senate leadership on the other hand, is holding its cards close to the vest. It may well be that the Senate prefers to let Bush take the lead in the tax tango."
The writer of this article mangled some of the details pretty badly, even confusing a sales tax with a flat income tax toward the end. However, he does make a number of good points, including the fact that the House is not as inclined to sit back and wait for the commission's work product before acting as the Senate is.
"Talk about making a clear distinction - where do you thing Zell would vote!"
Since Zell was a co-sponsor, I think that he made his feelings well known.
We are up to 23 co-sponsors in the House now. I hope we can get back to the 55 that we had at the end of the 108th ASAP.
http://thomas.loc.gov/cgi-bin/bdquery/z?d109:HR00025:@@@P
"Georgia Republican Congressman John Linder, who champions a national sales tax, tells Barron's that the House Ways and Means Committee may schedule hearings on tax reform as early as March."
I'll bet you could sell tickets for that .... LOL
It will be a blood sport, with the defenders of the status quo vigorously attacking. The more momentum the FairTax picks up, the more vicious the attacks will be. The budget committee hearings on tax reform last fall gave us a small sample of what this will be like.
I still think the Democrats are crazy to let themselves be positioned as the "No" party. That seems to me like an awful political strategy to me, but I'm no political strategist.
He he... I was speaking of a clearer and clearer distinction between parties - with an obvious dem standing out - although I don't think he's the only one who despises what the dems have become nor do I think he's the only dem on the bill...?
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.