Posted on 04/26/2006 8:29:38 AM PDT by Eaglewatcher
Americans are disenchanted with the federal income tax system. And why not? Only accountants and agents of the Internal Revenue Service understand the 8 million words on the 60,000 pages of the complex Tax Code. Given some of the horror stories over the years about conflicting interpretations from one IRS office to another, even that assumption is suspect.
According to an Ipsos Poll, eight out of 10 people recently surveyed think the system is unfair. Indeed, the only clear common ground for agreement between the various income groups in the poll appears to be their unhappiness. And they are echoing the sort of complaints heard a year ago when Uncle Sam held hearings on simplifying the code.
Any tinkering with the current system by Congress likely will be perceived as political manipulation in response to pressures exerted by special interests. For despite congressionally mandated, administration-recommended reforms, the code remains cumbersome and intimidating, complete with social engineering breaks and loopholes. So why not eliminate the unfair, distrusted and generally despised code and replace it with something far more equitable and efficient and less labyrinthian like the FairTax.
Taxpayers wouldn't have to worry about being audited by the IRS or making mistakes on their income tax forms. Gone would be corporate taxes, self-employment taxes, gift taxes, estate taxes and capital-gains taxes as well as the income tax. Yet, the bottom line for federal revenue would remain the same.
Everyone would contribute to the national sales tax. Collections would be made at the point of purchase. A system of monthly rebates could be set up for the poor making less than a federal income threshold. Much of the paperwork required by the IRS would simply disappear, replaced by sales tax collection forms. Such efficiency and simplicity would be an economic spur.
One would think that politicians whose jobs depend on being popular with voters would leap at the opportunity to get rid of the disliked tax code. Some day, they will.
While I can find the quote you've bolded in your reply, I cannot find the source on that site for your figure of 15.3%.
Perhaps you can enlighten me further?
CA....
It is my understanding that under the proposal, and resultant law, passed during the Clinton administration that no such "calulations" were built into the system, but rather a threshold test was employed, whereby once that level of income was exceeded, a given percentage of your Social Security income was subject to tax.
This is when they ask if you do indeed owe taxes.
The "principle", as you so deftly put it, involves paying tax on SS income when you first earn it, then having it included again when declaring your income at tax prep time, and then coughing up again when you start collecting SS and declaring that as income.
No thanks.
CA....
What are you using for a base? Federal tax receipts? Federal outlays? GDP? NDP? Exactly what?
I'm having difficulty with your math....
CA....
ping!
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:
The FairTax is a wonderful idea ... xcamel is a bad idea.
You folks can't even post a real news story, just pre-written "editorials" printed by some backwater "Bugger Flats" free newsrag.
Your numbers are "awry" by a considerable amount. You shouldn't try this at homw - you might hurt yourself.
By reading the FairTax bill, one can easily determine that the correct number is not your "15.3" but 8.09% tax inclusive of the taxable amount of the transaction taxed. That generaltes the same amount of money for SS/MC as the present payroll taxes.
the rest of your "reasoning" is equally flawed, but I see no need to educate you if you can't do so yourself as the information is readily available to anyone wishing to learn. Try the FairTax bill and the FairTax website.
FairTax bump!
You mean like the Wall Street Journal??
Never heard it called "Bugger Flats" by anyone with at least half a brain.
Your Status Quo Lover claims about it being DOA is hardly frightening - and actually very dumb, but that's you all over.
""From GSlob | 04/18/2006 7:42:53 PM PDT read Please be advised that in accordance with Gogol's quote "Ivan Ivanovich! One needs to have eaten a lot of beans before talking to you!" I placed you on my "to ignore" list. None of your posts or messages to me will be read, opened, or answered to."" Hopefully a lot of you will be so honored by such a time-saving action on his part. Please let us know ... 66 posted on 04/19/2006 7:55:06 AM PDT by pigdog ""To: pigdog In an apparent response to my #65, I received this Private Mail from GSlob:
So be careful lest you get your feelings hurt ... at least he didn't threaten to hit me with his purse ...
Presently employees and employers each contribute 7.65% of gross wages to FICA. Under the Fair Tax this is covered by the 23% tax on retail sales of new products.
You've slipped a digit. You mean $8,700 per person.
Well you needn't be skeptical of this legislation because it immediately repeals all income, payroll, estate and investment tax. It also calls for the repeal of the 16th. But that legislation must be separate. No fair taxer supports this bill without repeal of the 16th.
Yes, federal tax receipts. In round numbers our federal budget year 2006 will spend 2.5 trillion which is .5 trillion over projected receipts.
At least with the FairTax one has a lot of options and choices he may make (while there are none under the present system) as shown in this post.
... but not much more - in fact, it isn't even correct. See the link in post #36 to see why.
It is true that 15.3% is the total SS/M tax on WAGES -- although the 12.4% SS portion only applies up to the current $90K cutoff. The 2.9% Medicare tax goes on forever.
It is also true that the FairTax will replace this revenue.
It is NOT true that 15.3% of the 23% FairTax goes to SS/M. The FairTax BASE is much larger than the SS WAGE BASE, so it requires a smaller percentage to raise the same revenue.
Oddly enough, the percentages are almost exactly reversed. About 15% goes to general fund and 8% to SS/M. Totaling 23%.
Once again, you are misinformed gSlob. With the FairTax the "investor class" (whoever that might be) is greatly helped by the FairTax as are almost all taxpayers in general.
You're merely letting the grass grow inside your head as under the FairTax there are many more beneficial options available to an investor - one of which is that there is no taxing (or reporting) of investment income and you have complete control over it unafflicted by government mischief (such as making some investments off-limits or at least income tax unwise).
To get a partial idea of some of the benefits, check the information in the link in post 36.
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