South Carolina Ping
Posted on 10/25/2005 5:56:24 PM PDT by bummerdude
"Lawmakers looking to replace current code with flat-rate levy on business transactions."
A South Carolina senator dissatisfied with the results of a Bush advisory panel's recommendations on tax reform is set to introduce a bill to abolish federal income tax in favor of a levy on business transactions.
Sen. Jim DeMint, R-S.C., told the New York Sun he would put his plan before the Senate tomorrow. The proposal calls for an end to all personal income taxes and the attendant bevy of related taxes, deductions and exemptions, including the estate tax and the alternative minimum tax. The plan would eliminate the need for Americans to file income tax returns.
The president's panel, led by former Sens. Connie Mack and John Breaux, issued two proposals to reform parts of the tax code, but it didn't go far enough for many tax-reform activists.
DeMint told the paper the recommendations were "not the real reform we need."
"With the panel endorsing small changes," DeMint added, "I felt it necessary to get my plan for comprehensive reform out as quickly as possible."
According to the Sun report, the DeMint plan, which is co-sponsored by Sen. Lindsey Graham, R-S.C., includes an 8.5 percent federal retail sales tax on all new goods and services. Corporate income taxes would be replaced by an 8.5 percent business transfer tax charged during purchases of supplies or equipment.
Senate staff members tell the paper the 8.5 percent figure had been determined after consultation with economists to assure the proposal would remain revenue-neutral.
Under the plan, every American living below the federal poverty level would get a rebate for 8.5 percent of poverty-level income – which, for a family of four, is about $19,000 a year, the paper reported.
"There is a growing urgency and consensus that the tax code is killing our ability to compete in the global economy," DeMint is quoted as saying. "It's as if we have huge signs on our beaches saying, 'Take Your Business Somewhere Else!'
"Tax reform has never been more relevant."
I've also heard many conservatives criticize Lindsey Graham for being a moderate. Well here he is co-sponsoring this bill to eliminate the income tax.
Sounds like a spin off of the 'Fair Tax', which I'm a strong supporter of.
Puhleeze end the personal income tax! It's killing me and all self-employed persons. I am even turning down work because I can't afford to pay the taxes on the income I would make from it.
Flat tax or Fair tax; Anything is better than what we have now.
fyi
I always considered myself a Flat Taxer, but this sounds pretty damn good to me.
This tax policy is working quite well in Michigan which has the distinction of the highest unemployment in the nation.
If you think this sounds good, read the Fair Tax book by Neal Boortz and John Linder.
This one is just another half step towards real tax reform. It builds in hidden taxes, aka buisness transaction taxes. Sounds like more of Grahams RINO crap to me. SB 25 is already out there and makes a whole lot more sense than this proposal does.
Why can't the Senate RINOs get with the program and stop trying to kiss up to the other side?
Tax Reform Panel, my ass.
Well what the hell happened to Mr. Chambliss's bill?
He should just copy the fairtax, the ultimate solution for our current tax system failure/nightmare.
Then why is he trying to pull the wool over our eyes with this rope-a-dope? Corporate income taxes would be replaced by an 8.5 percent business transfer tax charged during purchases of supplies or equipment. Guess who really winds up paying both ends? If you guess the corporations you're wrong. The consumer ultimately pays both. This is a ploy crooks..er... I mean politicians have always used to hide taxes from us. They'll make the mean ol' corporation pay. Yeah, right!
SB 25 AKA the Fair Tax is still there. That's why I'm kind of torqued about these bacciacaloups muddying up the waters with this mess. At this point, I don't trust anything with Graham's name on it.
flat tax/fair tax - whatever... just scuttle the damned "progressive" income tax, the loopholes, the insane forms and regulations, and the never-to-be-sufficiently-damned IRS
Thank you!!
Well done, Parliament of Whores.
The design of the tax is not as important as the increased freedom.
A bill to abolish the income tax is good, but a constitutional amendment would be better.
And then the IRS ceases to exist.
And those are the most important changes that possibly could be made.
Barely a first term senator, DeMint is already getting the ball rolling. He is a true conservative leader and has a bright future in politics. I've also heard many conservatives criticize Lindsey Graham for being a moderate. Well here he is co-sponsoring this bill to eliminate the income tax.
Hmmm, wonder if the honerable Senators from S.C. have read the Constitution lately?
All Bills for raising Revenue shall originate in the House of Representatives;
It is one thing to to propose an amendment to an existing bill up for consideration having originated in the House. Another altogether if Senators are now taking on House authorities.
Wow! An 8.5% on all sales, transfers, and (sales tax free) business purchases - what a way to mandate investment in vertical integration and kill the current consumer economy.
For once I agree with you. "Parliment of Whores" indeed.
DeMint and Grahm are proposing no less than a business turnover tax. A system deemed responsible for most of the drag on European economies prior to the '50's when they added a credit to it to create the CreditVoucher VAT system they now enjoy.
Amazing thing is that it was so bad that the EU VAT was seen as a fix to save their businesses from total and inevitable collapse.
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