Posted on 08/08/2005 5:20:29 PM PDT by Man50D
As with the weather, a lot of people complain about the U. S. Tax Code, but few do anything about it. The reality is that the opportunity to do something about the tax code doesn't come around very often; maybe once per generation but now, in the year 2005, we have that opportunity. For the sake of all Americans and future generations of Americans, we must not squander this chance.
The President made tax reform one of the main objectives for his second term. He has vowed to reform the tax code, to make it "pro-growth, simple and easy to understand, and fair to all."
To this end, the President appointed a bipartisan panel to study the current outdated and unfair tax system and recommend changes. Change doesn't come easily in Washington and people are generally frightened by change, but in this case, change is absolutely necessary.
The current U. S. Tax Code is incomprehensible. No one understands every aspect of the code and even experienced tax professionals do not arrive at the same amount of tax due for any but the most basic of tax returns.
It is estimated that compliance costs drain over $200 billion per year from the economy and still millions of dollars of taxes due are never collected.
The granting of favors via the tax code is one of the major "duties" of Congress. A tax break here means a campaign contribution there. Some feel-good social engineering via the tax code today means votes tomorrow. Give special interest groups, their lobbyists and members of Congress enough time and their incestuous relationships produce the monstrosity of a tax code that we have today.
There is a better and fairer way for the government to collect taxes that will not only pay for government services but also promote economic growth and eliminate Washington tax engineering - the Fair Tax.
There is not enough space here to present all of the details of the Fair Tax, but briefly, the Fair Tax is a national sales tax that applies to the retail sale of goods and services. The income (both personal and corporate), payroll and inheritance taxes would be eliminated under the Fair Tax.
The first thing that comes from the mouths of the opponents of any sort of tax reform is that any change will hurt the poor and benefit the rich. In this case, they are half right. The Fair Tax would, with few exceptions, benefit everyone - rich and poor alike. The exceptions? Congressmen, lobbyists, tax attorneys and accountants.
Low-income families would be protected in two very important ways. First, everyone would receive a payment each month equal to the tax that would be paid on goods and services up to the poverty level. This payment would be made much as Social Security payments are made to retirees today. Low-income families would effectively not be taxed on the necessities of life.
Second, the highly regressive payroll tax would be eliminated. Currently, every working person is taxed 6.2% of his or her wages or salary with their employer paying an equal amount, up to an income threshold (presently $90,000 per year) and an additional 1.45% by both the employer and employee with no income limit. Those earning $90,000 or less per year are effectively paying 15.3% (counting the employer's portion which could otherwise go to the employee) right off the top. When income tax advocates talk about eliminating low-income people from the tax rolls, they never talk about the 15.3% haircut that low-income earners receive every payday. The Fair Tax puts that hard-earned money in the pocket of every worker.
The second thing that those that are uneducated on the Fair Tax screech is that prices for goods and services would skyrocket if a national sales tax were added to the sales taxes already collected in 45 states. It is very important to understand that upwards of twenty percent of the cost of retail goods and services under the present system represents the embedded taxes in the production chain. That is, the corporate income taxes and payroll taxes paid along every step of production are reflected in retail prices. When these taxes are eliminated, the final cost to the consumer of goods and services will remain essentially unchanged under the Fair Tax.
The Fair Tax would dramatically increase the competitiveness of American products in international markets thereby fueling economic growth. The Fair Tax would put 100% of your paycheck in your pocket. The Fair Tax would broaden the tax base - visitors to the United States would pay and the millions of dollars if ill gotten gains that escape the income tax in the underground economy would be taxed. The Fair Tax is, most of all, fair! No preferences. No loopholes. No tax breaks for some but not others. No paperwork to file.
The Fair Tax is not some pie-in-the-sky dream. The Fair Tax has been introduced in both the House (H. R. 25) and Senate (S. 25). The Fair Tax could be the most important piece of tax legislation since the Boston Tea Party, but it will NOT happen without citizen education and input.
Radio talk show host Neal Boortz and Congressman John Linder (R-GA) have recently written a book, The FairTax Book, which describes the details of the Fair Tax. The book is available on the Americans for Fair Taxation website [1].
Learn about the Fair Tax and then make your voice heard in Washington. Every voice counts. The Fair Tax can become a reality but only if every American that believes that there is a better way calls or writes their senators and congressman and make it abundantly clear that the status quo is no longer acceptable. Take the time to make that call or write that letter in support of the Fair Tax. It is now or never.
Do ya think the SSA just might know if a SSN is valid or not?
Do ya think the SSA just might know if a SSN is valid or not?They either don't know now or don't care...what would change that?
Gee, LL. Thanks for the link. Overall, a good testimony. Of course you took one little paragraph and made it look like the person was totally against the Fair Tax.
Sounds to me like they're just rounding off.
Huh?
1. Send in a form with the SSN's for your family members.
2. SSA compares the number on the form with numbers in their database, checking that (a) numbers are valid and (b) numbers haven't been used by anyone else.
It is all done with computers. Very simple process, actually.
Go play on another thread and leave the serious discussions to those who are capable of reading and comprehending the English language!
Interesting how the discourse and keyword associations of a thread deteriorate as soon some like lewislynn shows up isn't it.
Thanks. I was just wondering where the promo tour was taking them.
Think about the practical way the Fair Tax would play out. Every day, every purchase that everybody makes carries a painful reminder of how EXPENSIVE our government is.
The withholding, gone. The embedded cost of taxes in goods and services, gone. It's all right there on top of every purchase, every day.
Do you really think the sheep wouldn't wake up? That's the ultimate beauty of this plan, because the current tax code isn't really about funding the government, it's about control. (see my home page.)
You are correct, LooneyLiarLurkeyLou -- Burton and Mastromarco were heavily involved in writing both H.R. 2001 and H.R. 25.
At the outset, LurkeyLiarLooneyLou, let me stipulate that I believe that the majority of the American people are honest and that they pay their taxes faithfully.
That said, the case has been made many times on these threads that the incidence of tax evasion/cheating will decrease after the Fair Tax becomes law of the land (Bill Gale's wild rantings notwithstanding!), primarily because the Fair Tax treats all consumers as equals -- as was intended by the Founding Fathers, whereas the progressive income tax does not.
That fact alone will cause many who cheat now to quit cheating.
I and others believe that there are several other elements of the Fair Tax that will tend to lower the incidence of cheating. Think of every family unit having more disposable income, the individual and business FReedom aspect, a growing economy and increasing prosperity for all Americans, etc. etc., and you will get the picture, maybe.
That said, there will always be a criminal element in any society who seek advantage and will try to game the system to their advantage. The Fair Tax awards some rather stiff penalties for those who are caught cheating.
That you don't buy the argument is your problem, not mine. Most people, when I explain it to them, understand.
I would, of course, never expect someone with your mindset to understand.
As for my handle, it has served me well. Those who know me personally and on these threads know that I am neither a mental midget nor an idiot.
That cannot be said of those who know you on these threads.
Consistently pigheaded!
Consistently wrong!
Good Answer Bump!
I learned from the best!!
Roger that!
That said, the case has been made many times on these threads that the incidence of tax evasion/cheating will decrease after the Fair Tax becomes lawMany cases are made on these threads. You have to be a complete moron to think that just because a "case has been made many times on these threads" makes it fact...
You've just proven yourself a fool in more ways than just choosing your name.
One must be a complete moron to believe anything you say, LurkeyLooneyLiarLou.
Veracity is not one of your character traits.
"Go play on another thread and leave the serious discussions to those who are capable of reading and comprehending the English language!
You don't seem to have any trouble believing the bilge you keep repeating over and over again.
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.