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To: lewislynn
The text of the legislation is below. SHoud you prefer to read it: http://thomas.loc.gov/cgi-bin/thomas.

TITLE I--REPEAL OF THE INCOME TAX, PAYROLL TAXES, AND ESTATE AND GIFT TAXES

SEC. 101. INCOME TAXES REPEALED.

Subtitle A of the Internal Revenue Code of 1986 (relating to income taxes and self-employment taxes) is repealed.

SEC. 102. PAYROLL TAXES REPEALED.

(a) In General- Subtitle C of the Internal Revenue Code of 1986 (relating to payroll taxes and withholding of income taxes) is repealed.

(b) Funding of Social Security- For funding of the Social Security Trust Funds from general revenue, see section 201 of the Social Security Act (42 U.S.C. 401).

SEC. 103. ESTATE AND GIFT TAXES REPEALED.

Subtitle B of the Internal Revenue Code of 1986 (relating to estate and gift taxes) is repealed.

SEC. 104. CONFORMING AMENDMENTS; EFFECTIVE DATE.

(a) Conforming Amendments- The Internal Revenue Code of 1986 is amended--

(1) by striking subtitle H (relating to financing of Presidential election campaigns), and

(2) by redesignating--

(A) subtitle D (relating to miscellaneous excise taxes) as subtitle B,

(B) subtitle E (relating to alcohol, tobacco, and certain other excise taxes) as subtitle C,

(C) subtitle F (relating to procedure and administration) as subtitle D,

(D) subtitle G (relating to the Joint Committee on Taxation) as subtitle E,

(E) subtitle I (relating to the Trust Fund Code) as subtitle F,

(F) subtitle J (relating to coal industry health benefits) as subtitle G, and

(G) subtitle K (relating to group health plan portability, access, and renewability requirements) as subtitle H.

(b) Redesignation of 1986 Code-

(1) IN GENERAL- The Internal Revenue Code of 1986 enacted on October 22, 1986, as heretofore, hereby, or hereafter amended, may be cited as the `Internal Revenue Code of 2005'.

(2) REFERENCES IN LAWS, ETC- Except when inappropriate, any reference in any law, Executive order, or other document--

(A) to the Internal Revenue Code of 1986 shall include a reference to the Internal Revenue Code of 2005, and

(B) to the Internal Revenue Code of 2005 shall include a reference to the provisions of law formerly known as the Internal Revenue Code of 1986.

(c) Additional Amendments- For additional conforming amendments, see section 202 of this Act.

(d) Effective Date- Except as otherwise provided in this Act, the amendments made by this Act shall take effect on January 1, 2007.


Of course it would take an actual constitutional amendment voted on by the people to repeal the 16th Amendment. But the bill (HR 25) provides for it. Congress would have to pass the actual repeal amendment and pass it to the voters.

Interstingly enough the chance exists to actually do this. Conversely the Presidents illustrious commission came back with the same tried and true patchwork and hodge-podge we've had for decades.

Voters need to "bash" their elected representatives and senators constantly and consistantly to make the change. Not a flat tax and not a national sales tax. The flat tax will never be flat and the sales tax will only cause state and local governments to get into a bidding (or should I say pi**ing) war over rates.
11 posted on 02/11/2006 10:26:57 AM PST by K-oneTexas (I'm not a judge and there ain't enough of me to be a jury. (Zell Miller, A National Party No More))
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To: K-oneTexas; lewislynn; Bigun
Thanks to "Bigun" on 10/31/2005.

A Comparison of FairTaxSM, Income Tax, and Flat Tax

January 2003
FairTax, H.R. 25
Linder-Peterson
Federal Income Tax
Pre-2001 Law
Armey Flat Tax
H.R. 1040

16th Amendment

Proposes repeal.

No change.

No change.

Complexity

Individuals do not file. Businesses need only to deal with sales tax returns.

Very complex; 20,000 pages of regulations; I.R.S. incorrect over half of the time.

Withholding continues. Individuals and businesses must still track income and file income tax forms.

Home Business

Must record all business expenses and is subject to IRS audit?

NO!

Must record all business expenses and is subject to IRS audit?

YES!

Must record all business expenses and is subject to IRS audit?

YES!

Congressional Action

23% Linder/Peterson Fair Tax Act of 2003 (H.R. 25). Employees receive 100% of pay. Social Security and Medicare funded from consumption tax revenue, not your paycheck.

(H.J.Res61) - Will repeal the 16th Amendment.

Used by lobbyists and the wealthy for tax-breaks and loopholes. Used by bureaucrats for social engineering.

Rep. Armey’s H.R. 1040 has some problems, but is superior to current law.

Cost of Filing

No personal forms are filed. Significant cost savings.

$225 billion in annual compliance costs. 1

Simplified. ­ costs are somewhat reduced.

Economy

Un-taxes wages, savings, and investment. Increases productivity. Produces significant economic growth.

Taxes savings, labor, investment, and productivity multiple times.

Imposes a tax burden some of which is still hidden in the price of goods and services.

Equality

Taxpayers pay the same rate and control their liability. Tax paid depends on life style. All taxes are rebated on spending up to the poverty level.

Current tax code violates principle of equality. Special rates for special circumstances violate original Constitution and are unfair.

The flat tax is an improvement over the current income tax, but it is still open to manipulation by special interests.

Foreign Companies

Foreign companies are forced to compete on even terms with U.S. companies for the first time in over 80 years.

Current tax code places unfair tax burden on U.S. exports and fails to neutralize tax advantages for imports.

Taxes U.S. exported goods, but not foreign imports to the U.S., creating unfair competition for U.S. manufacturers and businesses.

Government Intrusion

As the Founding Fathers intended, the FairTax does not directly tax individuals.

Current tax code requires massive files, dossiers, audits, and collection activities.

A flat tax still requires personal files, dossiers, audits, and collection activities.

History

45 states now use a retail sales tax.

The 1913 income tax has evolved into an antiquated, unenforceable morass, with annual tax returns long enough to circle Earth 28 times.

A flat tax just won’t stay flat. Starting out nearly flat in 1913, the income tax grew out of control with top rates over 90% until Kennedy administration.

Interest Rates

Reduces rates by an estimated 25-35 percent. Savings and investment increase.

Pushes rates up. Biased against savings and investment.

Reduces rates 25-35 percent. Neutral toward savings and investment.

Investment

Increases investment by U.S. citizens, attracts foreign investment.

Biased against savings and investment.

Neutral toward savings and investment.

IRS

Abolished!

Retained.

Retained. Reduced role.

Jobs

Makes U.S. manufacturers more competitive against overseas companies. Escalates creation of jobs by attracting foreign investment and reducing tax bias against savings and investment.

Hurts U.S. companies and decreases available jobs. Payroll tax a direct tax on labor.

Positive impact on jobs. Does not repeal payroll tax on jobs.

Man-hours required for compliance

Zero hours for individuals. Greatly reduced hours for businesses.

Over 5.4 billion hours per year.

Reduced.

Non-filers

Reduced tax rates and fewer filers will increase compliance.

High tax rates, unfairness and high complexity harm compliance

Reduced tax rates and improved simplicity will improve compliance.

Personal and Corporate Income Taxes

Both are abolished.

Retained.

Retained in a different form.

Productivity

Increases.

Inhibits productivity.

Increases.

Savings

Increases savings.

Decreases savings.

Increases savings.

Visibility

The FairTax is highly visible and easy to understand. No tax is withheld from paychecks.

The current tax code is hidden, embedded in prices, complex, and incomprehensible. Taxes are withheld from paychecks.

Business component of flat tax and payroll taxes are hidden. Would be embedded in prices. Taxes withheld from paychecks.

[1] Testimony by the Arthur Hall, Tax Foundation and before the House Ways and Means Committee, 1998.

12 posted on 02/11/2006 10:45:14 AM PST by K-oneTexas (I'm not a judge and there ain't enough of me to be a jury. (Zell Miller, A National Party No More))
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To: K-oneTexas
Of course it would take an actual constitutional amendment voted on by the people to repeal the 16th Amendment.
Really? You sure that's how it works?
But the bill (HR 25) provides for it.
Then why didn't you show the part(s) from HR25 that provides for it?
16 posted on 02/11/2006 11:59:30 AM PST by lewislynn (Fairtax = lies, hope, wishful thinking and conjecture.)
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