Another win for national consumption tax reform. Let's examine it more closely.
To: ancient_geezer; pigdog; Taxman; Principled; groanup; All
I think this is worthy of a ping. What do you think?
2 posted on
06/13/2006 5:28:05 PM PDT by
n-tres-ted
(Remember November!)
To: n-tres-ted
3 posted on
06/13/2006 5:30:29 PM PDT by
SittinYonder
(Ic þæt gehate, þæt ic heonon nelle fleon fotes trym, ac wille furðor gan,)
To: n-tres-ted
Background: The Presidents Advisory Panel on Federal Tax Reform (the Tax Panel) released its report on reform of the federal income tax on November 1, 2005. The Tax Panel unanimously recommended two reform options: the Simplified Income Tax (SIT) and the Growth and Investment Tax (GIT). Both reform options are a hybrid of an income and consumption based tax. The Tax Panel also extensively examined a Progressive Consumption Tax (PCT). The Treasury Departments Office of Tax Analysis (OTA) provided estimates to the Tax Panel on the likely growth effects for each of these plans.
This is just the introduction. It runs 28 pages.
4 posted on
06/13/2006 5:33:22 PM PDT by
wolfpat
(To connect the dots, you have to collect the dots.)
To: n-tres-ted
". . . The report is pdf format, so cannot be copied."
Actually, it can be. Click the "Select" button on the Adobe Acrobat Reader Toolbar (I'm using version 7.0) and then you are able to highlight, copy, and paste from it.
I'll paste in some of the summary findings of the report here:
"Dynamic Analysis Models:
Three different models were used in the dynamic analysis to reflect the uncertainty inherent in modeling individual and firm behavior and the associated tax-induced behavioral responses. The use of several modeling frameworks allowed for a range of estimates to reflect the sensitivity of the results to underlying assumptions and modeling approaches. The models were structured to account for the effects of changes in the effective tax rate on capital and labor income and the consequent effects on economic growth.
The three models used by the Treasury Department for this dynamic analysis include:
(1) Solow growth model;
(2) Ramsey infinite horizon growth model; and
(3) Overlapping generations (OLG) life-cycle model.
Summary of Results:
All of these models predict that fundamental tax reform could lead to substantial increases in the national capital stock and national income. For example, the models suggest that the GIT recommended by the Tax Panel could lead to long-run increases in the capital stock ranging from 5.6 to 20.4 percent and long-run increases of national income ranging from 1.4 to 4.8 percent. The simulated growth effects of the SIT plan were considerably smaller, with long-run increases in the capital stock ranging from 0.9 to 2.3 percent and national income increases ranging from 0.2 to 0.9 percent. The growth effects of the PCT were the largest of the three plans, with long-run increases in the capital stock ranging from 8.0 to 27.9 percent, and long-run increases in national income ranging from 1.9 to 6.0 percent."
That pretty much gets to the heart of what's going on in the report, whose later parts are a feast for Statistics junkies who love to do "sigma" sum calculations.
6 posted on
06/13/2006 5:38:22 PM PDT by
StJacques
To: n-tres-ted
To: Taxman; pigdog; Principled; EternalVigilance; rwrcpa1; phil_will1; kevkrom; n-tres-ted; Zon; ...
Indeed worthy of discussion and a ping.
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 federal income, SS/Medicare payroll, and gift/estate taxes outright replacing 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:
17 posted on
06/13/2006 7:54:02 PM PDT by
ancient_geezer
(Don't reform it, Replace it.)
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