Upping the personal deductions sure makes certain we'll have more voters interested in getting government spending under control, NOT.It's really funny that you keep saying things like this and posting this quote considering the number of people who would pay absolutely no tax under the FairTax including the people who would profit by a rising rate. Would they care about extravagance if we were footing the bill?So many Americans paying little or no federal taxes makes for a natural spending constituency. It's like me in the restaurant: What do I care about extravagance if you're footing the bill?
Walter Williams
Right there you have the prime reason Congress is luk warm on any bill retaining Corporate Income Taxes, built on the same formula as the current system. This one's DOA even before it get to the gate, with nil advantages over the current tax system at all to business or the citizen who still ends up having to prove their income to the IRS same as ever.Said the man whipping the dead horse... I would say the chances of the Tax Reform Panel recommending a flat tax is 50/50. The chance for a NRST is probably worse than 100 to 1.
It's really funny that you keep saying things like this and posting this quote considering the number of people who would pay absolutely no tax under the FairTax including the people who would profit by a rising rate.
Strange, just who would not be paying 30% ontop of seller's price at the retail counter on everything they buy.
Last time I noticed welfare mother's and folks on SS never count the fact they might get a check from the government (rebate or otherwise) as basis to not complain about sales tax increases in the states. And that from much lower levels that that of an NRST, LOL.
Of all the plans I've looked at, including the current system, the FairTax excludes the most from paying any taxes. So keep talking, old man.
Actually it excludes no one from paying the tax, in point of fact it does however, assure every one receives a sales tax rebate for expenditures to the monthly poverty level of expenditure.
So yep on an effective basis most folks now paying taxes into the income payroll tax system pay less. OTOH however, most folks not paying income or payroll taxes today end up paying the NRST, that's what happens when the tax base is expanded, more folks pay taxes, and many paying taxes before the change end up paying less than the did.
Just the way it should be to me people ought to pay taxes commensurate with "what they actually take out of the common pot, not what they leave in."
-- Thomas Hobbes, Leviathan, it is fairer to tax people on what they extract from the economy, as roughly measured by their consumption, than to tax them on what they produce for the economy, as roughly measured by their income.
Problem with your progressive "Flat Tax" with its high personal exemptions, is that it removes more people from even participating in the tax system. That narrows the base of voters actively engaged in actively paying the costs of government, while at the same time expanding the taxes collected through business out of sight where the electorate can nolonger appreciate the actual cost of government in a personal way.
Said the man whipping the dead horse...
Whistling past the grave yard once again YN? You really ought to get a new crystal ball.
I would say the chances of the Tax Reform Panel recommending a flat tax is 50/50.
A flat income tax, not being boarder adjustable as regards international trade of goods and services is going nowwhere, however it does serve as a good distraction to the public as providing cover for the real action going on in government:
IPI Policy Report - # 166a Introduction to the International Side of Tax Reform
PDF: CATO Handbook for 108th Congress: International Tax Competition
see also:
http://waysandmeans.house.gov/hearings.asp?formmode=archive&hearing=20
http://www.finance.senate.gov/sitepages/2002HearingF.htm/hearing073002.htm
::tick:: ::tick:: ::tick:: fizzle, and watch your Flat Tax delusions die wither before your eyes, as it sits as the unloved stepchild in Congress.
The chance for a NRST is probably worse than 100 to 1.
"The lady doth protest too much, methinks."
--Hamlet (III, ii, 239)