[beyond the sea]

A Swing and A Miss on Tax Reform

This government is an ugly never-ending evil joke.

[kentj]

The people are speaking, no they are yelling - HR 25 the Fair tax bill - www.Fairtax.org - this is the only change we will accept or should accept - the messge is if you don't support it be prepared to go home from Washington on the next election.

[tomakaze]

iirc one of bush's conditions was that the new system bring in the same amount of money as the old system.
Way to shrink government.

[Killborn]

The hammer has spoken. Rep. DeLay has been one of the President's closest supporter and he's a reliable conservative.

Expect a p!$$3d of President to come out and yell at the bozos to take a mulligan.

[Zon]

ping

Well, I had something to say. I just had to figure out what it was.

Okay, you already know this but I thought I'd weigh in. The notion, or mind-spun fabrication about people taking home 100% of their pay cannot be done and also have prices drop 22%, supposedly that being fraud is a mind-spun fabrication. As you know, it's a lack of clarity ny the authors.

To be fraud, it must include the intent to deceive. For example, if a first grade teacher asked a student what day of the week today is and the student replies "Thursday", when in fact it is Friday", the teacher would not say the student lied or intended to deceive, rather, that the student was mistaken.

Two scenarios.

1, After the FairTax has been implemented employees take home pay is the same as it was under the income tax. Retail prices decrease 22%. The 23% FairTax brings the price back up to100%. It's a wash.  Then monetary benefits accrue when a person or family receives a monthly prebate check, when they buy used goods and capital gains are not taxed.

2) After the FairTax has been implemented employees take home 100% of their paycheck. Retail prices are reduced equal to the amount that employers pay income tax, matching FICA, and paper-shuffling income-tax compliance cost. Prices reduced about 7% to 9 %. For a person paying 15% in federal tax and FICA, that take-home pay increase combined with 8% retail-price reduction brings the the price back up to100%. It's a wash.  Then monetary benefits accrue when a person or family receives a monthly prebate check, when they buy used goods, and capital gains are not taxed. The taxed dollars they save under the income tax no longer has taxes removed prior to being saved. Thus they have more money to save.

Between the two the market for labor will set wage levels which will effect prices. It seems to me that producers with union employees will reduce their prices less than producers that have non-union employees.

[conservatism_IS_compassion]

these recommendations constitute good policy. They're good ideas, and I would support them on the floor of the House. But they're too small, and at bottom they only simplify and slightly improve a broken system.

Sort of puts you in mind of Hariet Miers . . .

[jaydee770]

I read an idea that seemed reasonable, though I'm frustrated that I can't find the link. If anyone can assist, I'd appreciate a proper attribution to the original author...

The idea was, the Feds don't tax individual people, they tax the individual states for a percentage of their annual GDP.

The States are left to their own devices as to how they collect the revenue to pay that fed tax bill each year.

This allows each state to implement their own tax policies. One state could have a flat-tax, another could have a sales tax and yet another could have something modeled after the current Fed tax code -- whatever.

Within 5 to 10 years, it should become apparent which states have the most desirable tax policies as they would noticeably attract new business and new residents. The states with the least desirable policy would be apparent by the business and residents fleeing from it.

[ancient_geezer]

A Taxreform bump for you all.

If anyone would like to be added to this ping list let me know.

 

I would say the House leadership does not appear to be overjoyed with the timidity of the Presidents Tax Refrom Panel.

OTOH, 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 replace them with with a national retail sales tax administered by the states.

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:

• search: "national sales tax" OR "national retail sales tax" OR "fairtax"

 

Time for Americans to get of the pot and let Congress know precisely where they stand. If real tax reform is to happen it can only come from the insistance of the American people, not Washington bureaucrats.

[n-tres-ted]

Well, HOO-RAY FOR TOM DELAY!!! I'm very happy to see he is able to devote some time to such important agenda items for the president, despite the Dem efforts to distract him with their new version of the forged Texas Nat'l Guard docs used by Rather against the president. I hope he is able to blow away that indictment quickly so he can get back to this important subject full time.