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."
More than that, It would tend to adjust outcomes, since livable wages could not remain artificially low, as caused by the progressive tax system.
A FLAT income tax is the ONLY way to go.
it's also the reason this will never happen. All those lawyers, accountants, govt wonks in treasury/irs; etc., etc., --it's a huge government employment program, and if the tax code is scrapped in favor of something so incredibly simple, all those people would need to find new work.
(I agree, though, wouldn't that be great?)
Is there absolutely any doubt that the Democrats are devoid of any new ideas? All they do is attack anything proposed by the Republicans. It's why we are steadily becoming the overwhelming party in power.
But there can be no denying the real problem politicos have with a simplified tax system. They will lose the ability to write special favors for their cronies and supporters into the tax code. That, and social engineering schemes. That is why it grows by scores of pages every year. To abandon the old system is to give up power. And clinging to that power is as bipartisan an issue as ever there was.
Somebody send the Commie Rangel to Cuba...In a circus cannon.
Every politician born would then be working hard to keep costs and entitlements down and the follow on tax to cover costs low.
Many truly wealthy people pay absolutely no tax now....Thats what I call unfair.
I agree with you on ALL points!
How about we completely untax the poor and then progressively tax everyone's wealth at the point of retail sale when they spend it on new goods and services?
What would you say if I told you that there were bills currently before both houses of congress which would do all of those things and, at the same time, rid us of the progressive income tax both personal and corporate, the payroll tax, Medicare tax, as well as gift and estate taxes?
Well there are (HR25/S25) and all that is needed is a little more pressure from the grassroots to get them passed into law!
"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."
The gift that never stops giving.
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,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:
ping for later
Can you post that graph of effective Fair Tax rates by spending level?
I doubt that he is talking about high wage earners my friend. More likely, it is the Theresa Hinez types who are so personally wealthy that they can afford to invest in the many TAX FREE vehicles currently out there and live VERY comfortably on the proceeds with ZERO taxable income!
While I suspect you are right to some extent, I think the US is going through a 'Come to Jesus' moment re: Gov't spending and taxation.
The past 50 years of creeping insolvency are finally forcing a serious look at Gov't spending and taxation policy. The Social Security debate is one indication of this urgency as are some cuts in the atrocious Agriculture subsidies. The WOT is also forcing a reorientation in spending and will force serious looks at ways to meet these requirements in an era of fierce foreign competition, aging demographics and corresponding pressure on the tax base.
IMO The inefficiencies of the present system are luxuries that can no longer be indulged. These pressures FORCE the revamping since philosophy has not, as long as we had the surplus that could be wasted or stolen.
Rich people (anyone making over $50K or so) pay 95% of their income as taxes. Give all that to people on welfare. Big corporations are EEEEEEVVVVVIIIILLLLL!!!
Redistribution of wealth has been the dumbocRAT rallying cry for some time.
And your source for this porcine assertion is..?..
No, I don't think so. The quote from the article is the proof. This government used to run from tarriffs and duties alone. As applied then, those amounted to a consumption tax
The Tay-ray-zzzahs of the world aside, most of the "wealthy" use their earnings to....create more wealth. When that happens, more jobs and more opporunities are available. "A rising tide floats all boats".
To tax income is ludicrous because it attacks the very source of new wealth creation. Government does this though, because it's easy. Easy that is, until it starts to "nuance" what is income and what is not and we end up with a 22,000 page tax code.
A consumption tax is really the way to go, and while the rate may be equal the amount paid is not. I don't think Rangel's constituants are in any danger of being crushed under the burden of the tax on a yacht or personal jet. Yes, they may have to do without the spinners on their Lincoln Navs, but we've all got to sacrifice.
The Socialists are not going to admit who they are and the Republicans haven't got the guts to call them on it. A moron like Orin Hatch will continue to call Kennedy "My good friend.
The Republicans are very happy to embrace Socialists who are destroying our country with their Govt. programs. The Republicans are appeasers
Do you realize that in the last election if the Republicans had been running a candidate against Kerry that Kerry would would be president today. .Read my tagline for clarification on this. - tom
When I read the headline, I thought at first it would be an item from Scrappleface.
In other words:
Wid out de massa, what wud us po slaves do?
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