Aw heck geezer. Get the pinger out!
Well, as you now, one man's unnecessary cost is another man's livlihood.
No proposal will be unopposed.
A Taxreform ping 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:
The progressive and hidden income tax has cost untold opportunities to be lost. With transparent taxation it's likely that many alphabet agencies would not have become such a drag on businesses. Some agencies would be nonexistent. Perhaps cures for cancer, AIDS and other diseases were squashed opportunities. Drilling for oil in ANWAR, no minimum wage laws, no McCain-Fiengold, would have been half as many assaults on the constitution and Bill of Rights, and on...
The cost of "compliance" with the current "voluntary" system is probably larger than the GDP of some fairly large States.
Arduin, Laffer & Moore tax studies:
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Arduin Laffer & Moore Summary Sheet Incentives matter for economic growth. For years, the principals of Arduin Laffer Moore Econometrics (ALME) have advocated fundamental tax reform that would replace the adverse incentives enshrined in our current tax code with a neutral, broad-based flat tax. The FairTax, a proposal that would replace our current tax system with a simple flat national sales tax, meets this criterion. *** Snip *** The FairTax addresses the ills of the current tax code by simplifying the tax structure; removing the tax on savings and investment; and lowering effective marginal tax rates throughout the economy. Removing the current code’s prevalent distortions allows the FairTax proposal to offer a revenue neutral replacement tax system that contains a much lower effective marginal tax rate. *** Snip *** In this paper, we evaluated the macroeconomic implications of abandoning our current tax system and replacing it with the FairTax proposal. We began this investigation with an overview of the proposal being examined: the FairTax. Following this brief overview, we then examined the current income-based tax system with specific attention on its adverse impacts on economic activity. *** Snip *** This analysis showed that in both the short- and long-term, a policy shift from our current tax system toward the FairTax would greatly benefit the U.S. economy by increasing economic growth, savings, foreign investment, and personal income.
Link to Summary Sheet Link to the full PDF paper ---> "A Macroeconomic Analysis of the FairTax Proposal" |
If people think Social Security is the third rail, wait until a serious push for tax reform comes around. It's (unfortunately) so deeply ingrained into the economy. Jobs and companies are built around interpreting the dizzing array of tax laws. Honestly, I think it would almost take another Revolution to bring it about.
Honk, but don't hold your breath thinking a Democrat House or Senate would ever even talk about it.
I agree with two of the points made here:
And because everyone pays the FairTax, and pays it at the same rate, the visibility of the FairTax ensures a built-in downward pressure on the size of the government in the most effective way: By requiring the government to change the rate for everyone – even for a seemingly insignificant loophole. And the FairTax minimizes the economic harm caused by taxes that serve as a stealthy exaction.
And as well:
Of the various forms of consumption tax, the sales tax surely has the great advantage … of eliminating the despotic power of the government over the life of every individual, as in the income tax, or over each business firm, as in the VAT. It would not distort the production structure as would the VAT, and it would not skew individual preferences as would specific excise taxes.
The transparency and the non-discrimination in a uniform sales tax are indeed advantages over the current income tax system, which only encourages hordes of specialists and experts in reducing tax burdens. Those are gross economic inefficiencies, and nothing but a waste of good people's time on examining and complying with the minutia of tens of thousands of pages of tax laws.
However the history of sales taxes is that they also tend to become non-uniform --- just look at Florida's sales tax. It has both exemptions and sales tax holidays. Still, they are far better than income taxes, even when sales taxes become a bit of a political football themselves.