Posted on 01/26/2006 12:32:20 PM PST by phil_will1
Tax reform ping
Fair Tax Plan!.........
"The transition period will be difficult."
That depends on what replaces the income tax system. If it is the FairTax, then the economy will flourish, and the transition won't be nearly as difficult as the author believes.
I kind of doubt that universal dislike of the income tax system is going to cause anything to happen. When has it not been universally disliked?
"However, change does not happen because everyone gets together first and decides a change is going to happen. Momentum will build quickly around a single event or thought leader. When the general public senses that the end is near, an overwhelming flood of support will rapidly hasten its demise."
That makes sense to me and I can envision that happening.
Ohhhh! Thank you!
"Irregardless," Gracie?
"I kind of doubt that universal dislike of the income tax system is going to cause anything to happen. When has it not been universally disliked?"
See post #7.
"When has it not been universally disliked?"
When it was introduced, it only applied to something like the top 2% of wage earners. Withholding wasn't introduced until the 40's, I think. When Jimmy Carter ran for President in 1976, he referred to the IRC as a "disgrace", but it was nowhere near as bad as it is now. For example, no one had ever heard of the AMT then.
The other point that the author makes, which is very valid, is that we either change it before it collapses of its own enormous weight, or we wait until we have a financial catastrophe. The choice is ours. The point is that it WILL be changed, that much is certain.
I find it difficult to believe that the political class will do anything that would have the effect of reducing its influence and power. If the tax system were actually reformed and something like a VAT or flat tax put in place along with abolishing 99.9% of all deductions congressmen and senators would have little to hold over the heads of their constituents in order to squeeze perks, bribes (campaign contributions) and special priviledges out of them. Politics seems to attract people to whom power, perks and priviledge are especially important. I do not see them willingly abandoning the one system upon which so much of their power rests.
A Taxreform bump for you all.
If anyone would like to be added to this ping list let me know.
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:
if everyone had to do their own taxes without software, the system would be changed tomorrow
unfortunately the widespread use of tax preparers and software has made this deviously complex task still do-able
"I do not see them willingly abandoning the one system upon which so much of their power rests."
I totally agree with your statement. However, I would say that the operative term is "willingly". We are getting close to the time when we can "unelect" some obstructionists in congress. When that happens (not IF, but WHEN), you will see the others fall in line. There is one source of power that trumps the IRC and that is the ballot box.
I would love to believe this...
But the bottom line is most people aren't effected by the Income tax in a bad enough way to mobilize them.
The people in favor of the current broken system are the moochers and liberals who tie it to feel good give away programs - and their votes and influence are far more powerful than most other groups.
I wish you luck, but just like social security reform and affirmative action reform this probably isn't going to happen in our lifetimes.
BTW...I know something is up...H&R Block is moving into other fields as we speak. They are moving into investments, mortgages....in anticipation that tax preperation will not be a business in the near future. IMO
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