Posted on 03/05/2005 7:49:13 AM PST by Pendragon_6
(CNSNews.com) - New York Democratic Congressman Charles Rangel Friday responded to suggestions that the federal income tax be gradually replaced with some form of consumption tax, saying that equal taxation is unfair.
Federal Reserve Chairman Alan Greenspan told the President's Advisory Panel on Tax Reform Thursday that the current U.S. tax code is so complicated as to be a drain on the economy.
"A simpler tax code would reduce the considerable resources devoted to complying with current tax laws," Greenspan said, "and the freed-up resources could be used for more productive purposes."
Rangel responded that any tax of that nature, such as a national sales tax, would be an injustice.
"When you have a tax, where you pay the same tax whether you're wealthy or you're poor," Rangel said, "that's not fair."
Rangel responded that any tax of that nature, such as a national sales tax, would be an injustice.
An injustice that the producers would no longer be sacrificed to the less productive and welfare wards of the State.
.To Charles Rangel and those of his ilk, they are so unqualified and incompetent that they're blind to the madness of their ways.
However, there is the possibility that Rangel and others do know that the error of their methods but don't care so long as they continue to receive their unearned paychecks and get reelected.
Easy prediction: an increasing number of the worst offenders in congress will not be reelected.
Well, the obvious answer to your question is to avoid paying any tax!....and that is my point.
The subject we are all discussing isn't being "nice" to people...It is about the various methods of taxation, and one facet of that is whether or not wealthy people who pay no taxes whatsover should pay some sort of tax, and if so, what kind.
How does the FairTax protect low-income and lower middle-income families and individuals?
Under the FairTax plan, poor people pay no net FairTax at all up to the poverty level! Every household receives a rebate that is equal to the FairTax paid on essential goods and services, and wage earners are no longer subject to the most regressive and burdensome tax of all, the payroll tax. Those spending at twice the poverty level will pay a tax of only 11.5 percent – a rate much lower than the income and payroll tax burden they bear today.
Under the federal income tax, slow economic growth and recessions have a disproportionately adverse impact on lower income families. Breadwinners in these families are more likely to lose their jobs, are less likely to have the resources to weather bad economic times, and are more in need of the initial employment opportunities that a dynamic, growing economy provides. The FairTax dramatically improves economic growth and wage rates. Retaining the present tax system makes economic progress needlessly slow, thus harming low-income people the most.
In contrast, the FairTax dramatically improves economic growth and wage rates for all, but especially for lower income families and individuals. In addition to receiving the monthly FairTax rebate, these taxpayers are freed from regressive payroll taxes, the federal income tax, and the compliance burdens associated with each. They pay no more hidden taxes on goods (averaging 22 percent) or services (averaging 25 percent), and used goods are tax-free.
http://www.fairtaxvolunteer.org/smart/faq.html
Simply put, "The fair tax replaces the way we're currently taxed - based on our annual income - with a tax on goods and services. The FairTax is a voluntary “consumption" tax: the more you buy, the more you pay in taxes, the less you buy, the less you pay in taxes.
I read the summary. The "simplicity" aspect is good. But I can't agree with the "fairness" aspect.
I see educated, hard working young people trying to make ends meet....and wealthy non-working young people who have more than enough money.
I am as conservative as they come but there seems to be something wrong with this. I have no grudge with the truly wealthy being, and staying wealthy and passing this off to their children. I just have a problem with wealthy people payiung NOTHING!!!
Now it is true that they would be taxed on consumption just like everyone else...But the consumption tax rate would have to be enormous to make up for the loss that high income ( I emphasize income) wealthy folks now pay which will be lost. The young, hard working people, along with the wealthy, will have to give an ever increasing portion of their INCOME on their consumables.
Still not a good thing asd it will be a huge burden on those that are trying to make it on their own..
the wealthy will pay more because they spend more
I pay more tax in a month now than I took home in my paycheck when I was 20.
There must be some kind of disconnect here as I COMPLETELY agree with you on that point! That is one of the BIG problems with the current system as I have pointed out multiple times already on this very thread.
Why do people accumulate wealth? For what purpose?
Will not ALL wealth be consumed at some point?
The author of the FairTax bill, Congressman John Linder of Georgia, offten points out that the FairTax is, in reality, a tax on accumulated wealth and I absolutely agree with him.
What am I missing here?
What am I missing here?
Think about it. Most everybody saving money and investing it in what? In business because investing in business -- be it by stock or venture capital -- is not taxed. Investing in business more than they consume.
If the trend continues everybody will be investing an increasingly disproportionate amount compared to what they consume. Thus proportionately less and less taxes will be paid
Worse, with all that business investment there will come a shortage of workers to fill the jobs of the flood of new businesses that the investment money spawned. Thus to follow will be a flood of new people come to America to work those jobs.
And that just acerbates the problem. Evermore businesses, jobs and workers all of them investing a disproportionate amount of money in business rather than consumption. Evermore businesses, jobs and new workers moving to America. Causing growing disproportionate amount of money to be invested in business and less and les paid in taxes.
There'll be no end in sight.
The balance will get all out of whack as the portion of taxes paid dwindles to insignificance.
The sky is falling. :-)
Damn! I guess you are right!
How could I be so blind as to miss all that?
;>)
Well, the obvious answer to your question is to avoid paying any tax!....and that is my point.
Which is interesting in that the return on "tax free" bonds is about 25-30% less than the return on same grade "taxable" bonds. Consider on top of that, the tax free bond is also lending your money to government.
Doesn't look so "tax free" from my perspective. Looks more like stealth taxed to my view.
cHARLIE..cHARLIE....YOU ARE LIKE THE REST OF THE
CLUELESS DEMOCRATS....THEY ARE NOT FORTITUTANEL,
TESTACLE WISE.....Jake
Please put a dollar figure on how much wealth is "enough".
What you say is absolutely true.
But there are tax free instruments which will not increase your tax burden no matter how much you have invested in them. In addition, there are various trusts, capital investments, and business arrangements that can grow a person's wealth with no tax burden.
Sophistry!...This was purely a figure of speach. There are those, for example, whose caloric intake is directly proportional to their income, and those where there is clea rly no connection.
In my view there is no limit to what a person's wealth should be....or what he or she can pass on to those who follow.
My complaint involves the truly wealthy people who pay nothing in taxes.
I think it's high time for some Elephant Congresscritters to start calling those in the Donkey party ,like Charlie,...the Marxist Socialist's that they are.
Thank you for "getting" it!
Wealth and income are 2 entirely different things. Put down the crack pipe and hop back on D.U. for some low IQ fun.
NO!!!...Really? What gave you your very first clue?
...."When you have a tax, where you pay the same tax whether you're wealthy or you're poor," Rangel said, "that's not fair......
This is a patently untruthful statement.
If you are poor and shop at the Dollar Store the items cost less than those purchased at Nieman Marcus and the tax is less.. I f you buy a new Ford Expedition with all bells and whistles you pay more tax than on a used 1985 Ford Tarus. If food is taxable, those that buy prime rib eye pay more than those who buy linchmeat.
The fact is, the middle class and wealthy will pay much much more tax.
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