Posted on 09/29/2005 10:29:26 PM PDT by Sprite518
I can see Congress issuing tax cards that determine your 'sales tax' rate based on your income and ethnicity.
I thoroughly agree with that.
The income tax must be repealed as part of the plan to shift to a flat tax. None of this phasing one in while phasing the other out.
That's a prescription to get saddled with both.
But, in some areas we already are saddled with both. Don't we have sales tax on gasoline??? Are there other things the fed already has a sales tax on?
There are two main forces that affect the nature of the demand for a product. The Subsitution Effect says that you will substitute lower-cost goods for similar, but more expensive, goods. The Income Effect says that, if disposable income increases, you buy more of all goods. Since the FT eliminates all federal taxes, the Income Effect can offset any price increase that might result from the tax. For those goods whose demand is not sensitve to price changes (do you really shop around for the cheapest heart transplant?), the impact of the FT is virtually zero.
To me, however, the real benefit of the FT is that the federal gov't can't use tax policy to redirect resources. Finally, I've always believed I know how to spend my money better that the federal gov't does.
Bulloney. Anybody who gets a service or good for personal consumption from a non-regisitered retail, must file and remit the tax on that product. And with that requirement the INDIVIDUAL is open to an audit if the taxing authority happens to think you owe tax. Read your bill sometime.
LOL, it is just a bill. Everything is subject to negotiation and everything is admendable even after it passes. That is why many people want a Constitutional Amendment before they pass this.
"The short Time that the Fair Tax has been out it has been a New York Times Best seller. I believe that says something. Moreover, there is a House and Senate Bill for the Fair Tax. HR 25 and S 25 are the Bills. Does the Flat tax even have a bill in congress."
Actually, there are several flat tax bills in congress. There is the Burgess bill in the house (which is what the Armey bill has morphed into) and the Shelby bill in the senate. There may be others. This brings up a problem in that most flat taxers aren't familiar enough with specific flat tax proposals to support a single bill. Prime Choice is a Prime Example (pun intended). He supports a flat tax bill which doesn't exist and probably has no other supporters in the country. Flat taxers in general (there are exceptions, I know) support a form of taxation, and not a specific proposal. FairTaxers have been criticized for supporting the FairTax, and not the more generic term, sales tax. That is because FairTaxers understand how important it is for those supporting fundamental tax reform to coalesce around a single plan. Having fragmented support plays into the hands of those who want to keep the status quo.
"I do not keep up on local politics in South Carolina. I did not even know that was a debate there?"
Yes, it was a big issue in the senate race there last year. Rep. Jim DeMint beat state education secretary Inez Tenenbaum by about 8 or 9 points, if memory serves. Very few South Carolinians ever heard of the FairTax before that race, but now we have quite a bit of support there. Sen. DeMint BTW is the sponsor of a bill very similar to the FairTax, one that David Burton, the author of both, says is "economically identical".
Apparently Sen. DeMint doesn't think his support for tax reform is crippling his career.
Always Right,
Please show us where in HR 25 or S 25 it says this?
And we've all seen just how "fair" the government has been in invading consumer privacy just to collect a few hundred dollars in tobacco taxes, haven't we?
Yup...it's damnably clear that the "fair tax" hounds haven't thought this one through.
And we all know that bills never get amendments prior to passage.
But neverminding that, how about all those folks who actually saved their money that's already been taxed? They'll want to spend that in their retirement (or when purchasing large-ticket items) and they're going to get taxed twice on the same dollar.
Please tell me how that is "fair."
"No one seems to be considering what happens when home mortgage interest is no longer deductible."
If you're not paying federal income taxes, what possible difference does losing a tax deduction make? Your comment makes it sound like paying interest to a bank reduces the cost of your house. It doesn't. Under the FT, if you want to reduce your taxes, save more and spend less.
And exactly what parts of HR-25 and S-25 do you have a problem with?
Oh so you can read their minds? LOL!
It is not there, but you know it will be there...LOL!
First off that is a very little select minority of retires that you are talking about. If they take out their retirement today, they will still get hit with Capital gains tax under the current tax system. In a Free Tax they will only get hit when the make purchases of goods and services....
You talk about getting taxed twice. The Feds are doing that today. Retirees get hit again when they die under the current system with the death tax...
That is a pretty weak argument...
"Bulloney. Anybody who gets a service or good for personal consumption from a non-regisitered retail, must file and remit the tax on that product. And with that requirement the INDIVIDUAL is open to an audit if the taxing authority happens to think you owe tax. Read your bill sometime."
And what percentage of retail sales do you think will fall into this category - 2% maybe? You really think the federal government is going to go around doing personal audits on that kind of stuff?
Your paranoia is amazing. Tell me this, AR. The President's tax commission issued its interim report in April. That report was the culmination of several months of testimony by expert witnesses, public town hall type meetings, and internet submissions by the public. The title of that report was "America Needs a Better Tax System". How is it you are oblivious to the deficiencies of the current system which are readily apparent to the vast majority of Americans but insistent on exaggerating every defect (real or imagined) of the FairTax?
http://www.taxreformpanel.gov/index.shtml
"For millions of Americans, the annual rite of filing taxes has become a headache of burdensome record-keeping, lengthy instructions and complicated schedules,worksheets and forms, often requiring multiple computations that are neither logical nor intuitive."
Simple, you can choose to keep that money and chose not spend it.
But in the current tax system/Income Tax those savings are taxed when you withdraw those savings.
Bingo....
"LOL, it is just a bill. Everything is subject to negotiation and everything is admendable even after it passes."
That isn't an objection that is specific to the FairTax; it can be applied to any serious attempt to reform our tax system. Is that your position - are you opposed to any and all Fundamantal Tax Reform?
How much is the fine usually?
I'm sure that, here in the States, we'd wind up doing as much...only with bigger fines, and with RFID chips. If a product doesn't have RFID, the consumer will be branded a "tax evader" and subject to a "tax inventory," (the new "tax audit" by the "non-IRS" under the increasingly-misnamed "fair tax") that would beget even larger fines than the Italian government could ever conjure.
The rate is quoted as 23% but to compute the tax on an item you multiple the price of the item by .2987 for a real tax SALES TAX rate of 29.87%.
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