fairtax ping
Does Acme Ties have good designs....just curious.
Are business to business transactions exempt under fair tax? If not, the numbers are wrong.
If true, there needs to be a "cost of labor" adjustment in the after fair tax formula.
Implementing a "fairtax" without repealing the 16th amendment will leave us with federal income taxes PLUS the "fairtax."
ACME ? I thought they made bombs & anvils and rocket roller skates and stuff....
It's the tax that France invented. A VAT is the same no matter what you call it. It's insidious and creeping and easy to crank up and up and up.
I prefer the flat tax with exemptions for necessities (so as to not make it too onerous on the poor) and continued tax deferal status for IRAs and 401(k)'s (to continue inducements to save for retirement).
Hope they're better than the stuff Wile E. Coyote gets from them.
Bull crap!
Returning the federal gov't to a tax based on commerce and not in individual income is urgently important for two reasons:
The individual income tax has destroyed financial privacy, which used to be as an important a right as reproductive privacy. Having even a single dollar in your pocket gives the gov't the nexus to force you to testify against yourself if you came by that dollar legally, and if you properly reported and paid the tax on the "income" of that dollar. It even leads government to absurdly define "income" to include gifts and (government) lottery winnings, while excluding expenses like the cost of driving to work each day.
The individual income tax also justifies the ongoing and surveillence of every bank and credit card transaction, even to mandating the reporting of cash transactions.
Needless to say, those who live in the underground economy (illegal alien day workers, drug dealers, prostitutes, etc.) are not paying income tax today, and this may be more than 10% of the economy.
The second reason that the Fair Tax plan is important is the very reason that Chrysler was sold to a German firm rather than buying it.
When a US corporation bids on selling their product to a non-US buyer, their entire cost structure includes all the income taxes levied on all the supplier's components along with their own tax burden. When a European corporation bids on the same sale, they know that the Value Added Taxes they paid will be refunded when the product is exported.
Additionally, the Europeans have "socialized" health care costs. The cost of the health care of Chrysler workers is included in the price of their cars. The cost of the health care of Fiat's workers is paid for by government, so Fiat can sell a car for less as a result.
This means that US prices must be higher to naturally reflect the tax burden that European (and Asian) suppliers do not share. This may be upwards of a 10% difference in price advantage.
For these two reasons alone, the income tax code must be destroyed and the Republic returned to the tax system that the founders designed as being the most fair and most likely to uphold and not destroy liberty.
In the first example, manufacturers' profit is 33% of sales under the present tax system. DOESN'T HAPPEN! So, the illustration gets off to a really bad start. I didn't read any further.
Who wears ties anymore?
Screw this 'FairTax' smoke and mirrors routine, let me tell you one thing folks:
You do NOT want what is still a VAT (Value Added Tax), aka a 'National Sales Tax', and here's why:
The VAT penalizes consumers who have the least amount of money, it inflates prices unrealistically, and in case anyone is interested, CANADA has had such a taxing mechanism in place for years (they call it GST, HST, or some similar alphabet combination), and for example, the tax is 15 percent on the purchase price, which means that if you intend to spend $100, you better bring $115. And if you're buying gasoline, in some provinces you'll be taxed on the tax, i.e., the province will levy it's OWN sales tax based upon the total of the gasoline price PLUS the national tax. Oh it's a real sweetheart deal if you're a government bureaucrat looking to milk the economy from top to bottom, all at the expense of the consumers.
Big ticket items will cost MUCH more, and remember that when you're looking at that motor vehicle purchase for 20, 30 or 40 grand, better calculate in an extra chunk o' change for the tax man, because you can bet the rent that you'll be taxed on the purchase of your new wheels.
And while we're speaking of the Canadian Peoples Republic, here's another lovely little tax grab: when you buy a HOUSE (that's right, a house!) your purchase will be taxed at 15 percent, which is traditionally worked into your mortgage payments, but that means that the price you pay for real estate is *likewise* artificially inflated for this boondoggle concept.
The VAT tax-scam is something that will never be abolished, if it is allowed to to be enacted.
Katie, bar the door!
bump for tuesday update.
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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:
The piece is informative and useful, and much appreciated. However, it fails to mention the additional very significant benefit to the citizen fro the Fair Tax reflected in the fact that the tie will be purchased with dollars that are "before taxes" meaning no income taxes have been deducted from the paycheck. Right now, that same person has to pay $20 for the tie, and those dollars have already been reduced by withholding of income taxes and payroll taxes. With the Fair Tax, that will no longer be the case.