The idea of a national sales tax is gaining acceptance in Washington

World Magazine ^ | 4/7/06 | Timothy Lamer

[Eaglewatcher]

It just keeps on chugging!

[TexasTransplant]

Unless the IRS is gone, they can chug all they want.

FairTax

TT

[EGPWS]

23% seems a bit excessive however it still would be a considerable drop in rate for me....

[xcamel]

why is it only really bad ideas get so much traction?

[Parmenio]

I assume this would be a "value-added" tax and not a true sales tax. If indeed we could kill the federal income tax this might be a good development. Although state income taxes are all based on the calculations for the Federal income tax so changing to this system would mean chaos. I don't see this happening in the 21st century.

I would expect privatised Social Security before the enactment of this plan.

[TChris]

As soon as this is passed, we will need to begin the pressure to get it lowered. A government that needs to confiscate 23% of your money is a government that is involved in far more than it should be.

I can't see a proper, reasonable government ever needing more than about 15% to do what it needs to do.

[Sarajevo]

I would imagine that state sales taxes could put you right back at that old rate. I can't see the "Guv" doing anything to lessen their claim on our hard earned money.

[Disturbin]

And I thought the 17.5% VAT (sales tax) in the UK was bad!!!

[KarlInOhio]

I assume this would be a "value-added" tax and not a true sales tax.

No, it is a sales tax charged for new retail purchases only. A value added tax would tax business-to-business transactions. This doesn't. A value added tax would require a lot of paperwork to track the price a company purchases items for along with the sales price to figure out how much value was added. This doesn't. It is only charged at the final retail sale, not every step along the way like a VAT.

[Filo]

23% seems a bit excessive however it still would be a considerable drop in rate for me....

23% is obscene and I'd want to see the figures about how much more the government stands to get with that figure.

Keep in mind that they'd be saving a bundle by disbanding the IRS and it's associated bureaucracy, etc.

I also don't like the "rebates to a poverty line level" nonsense. Just exclude things like rent/mortgage and basic food from the tax and be done with it.

Forbes is right, though, this needs to be accompanied by a repeal of the 16th and legislation that requires any increase to go before the voters for a 2/3s majority.

States should also be obligated to eliminate income taxes, property taxes and the holy host of other nonsense that they use to extort money from citizens.

The law for this should also include stipulations that allow the tax to be reduced as the government cuts programs that should be cut (entitlements, etc.)

This country should be on the verge of a tax revolt with the theft that takes place at the federal and state levels. I can’t imagine why it isn’t!

[xcamel]

Notice never any discussion of limiting the amount of the VAT? like the FairTax nazis... totally deluded beyond ability to comprehend...

[EGPWS]

I can't see the "Guv" doing anything to lessen their claim on our hard earned money.

Call me a cynic but nor can I.

[AmericanChef]

-and each American would receive a rebate for spending on necessities up to a poverty-line level of consumption.-

I don't like this part. Sounds like they should just decrease the rate a bit to adjust for such things; this is just a red tape dispenser for the masses, which can quickly turn into the same crappola we have to go through now.

I do, however, like the idea of foreign visitors and illegals paying into the gubmint. A small way (very small!) to retrieve some of the aid and social services we've given over the years.

[BobS]

When I lay myself down to sleep for the last time, I will arm something unpleasant for whoever touches my body.

[MarcusTulliusCicero]

Forbes is definitely right. We can all envision that scenario. We've "abolished" the income tax and instituted a sales tax. Then two years later, Hurricane Whatever blows through.....and we're told that, in the name of compassion, we have to spend "X" amount of unplanned dollars. So, rather than run a dreaded deficit, we'll just reinstitute a nominal temporary income tax...just till we get through this one crisis, of course. And viola...

[Disturbin]

" No, it is a sales tax charged for new retail purchases only"

So we would still pay state-controlled sales tax for non-new purchases (like used cars)? Talk about complicated.

[TrybalRage]

23% is obscene?

Right now I think I'm getting hit for about 33% out of my pay.

[AnotherUnixGeek]

Flat-tax advocates like Steve Forbes worry that Mr. Linder's sales tax, if unaccompanied by a repeal of the 16th Amendment (which gives Congress the authority to tax incomes), would leave the door open to a European-style system of both consumption and income taxes; the temptation to restart the income tax would be tremendous for big-spending politicians, they say, and the country could end up with a tax structure far worse than what it has today.

Good point. Any national sales tax has to be accompanied by the permanent repeal of federal income tax and the permanent repeal of Congress' ability to impose a federal income tax. Otherwise, as Forbes says, we'll end up with both.

[mysterio]

It's actually 30%. I am trying to keep an open mind, but I remain unconvinced.

[divine_moment_of_facts]

23% is absolutely INSANE..15% should be the max. I would assume there is a plan in there to end the Death(grave-robbing)tax