Gomory talks around the edges of a real lasting Constitutional American solution:
FAIR TAX (H.R. 25/ S. 1025)
The Fair Tax would replace income taxes including corporate income taxes with a National Retail Sales Tax (NRST).
Corporate embedded are estimated as 23% of the price in ebery product bought.
The price of a $50 dollar American toaster would be $38.50 without the embedded corporate tax. Under the Fair Tax Americans at home would pay $38.50 and an NRST of $11.50.
However, the $38.50 American toaster would be $38.50 in Japan down from $50 under the current system. An immediate 23% spike down in price of American made exports would revive American manufacturing.
And people would think April 15 was just another day in Spring.
Interesting!
The FairTax - isn't that the tax system that would tax consumers at 30% on every new product and service purchased, including new homes, and tax on rent while corporations would pay nothing at all?
The price of a $50 dollar American toaster would be $38.50 without the embedded corporate tax. Under the Fair Tax Americans at home would pay $38.50 and an NRST of $11.50.
Best case scenario, prices would fall, but the FairTaxers depend on double counting to make that happen.
One interesting feature of the FairTax is that business pays no tax for employees, but government does. Government also pays tax on products and services purchased while the private sector doesn't. What happens to federal, state and local tax rates when they are taxed at the 30% rate? (I know we all hate government, but government doesn't pay taxes, citizens do)
And people would think April 15 was just another day in Spring.
Or every trip to the grocery store, doctor, and first of the month when the rent is due, would be a little April 15th.