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To: SampleMan
He does the same thing to every poster. He attributes bogus arguments to you that you do not promote - then expects you to defend yourself against them. He's the strawman king.

I am like you in that I support a national retail sales tax - the leading proposal just happens to be hr25.

It is, by far, better than the income tax in every respect.

196 posted on 08/03/2007 5:55:32 AM PDT by Principled (Vaporize the "Divide and Conquer" taxes - Have everyone pay the same marginal rate!. NRST!)
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To: Principled
Yes, I noticed that he doesn’t want to actually engage in an actual discussion, which is too bad, because there are a lot of particulars to be worked out.

The issue of off-budget entitlements is one, as is the issue of business deductions.

I think the entitlements would need to be changed fundamentally, so that we stop pretending that the money that goes in is the money that comes out. If the income tax beast is to really be slain, then I think they must be funded out of the general fund without any pretense of smoke and mirrors. Revenue to support them would cease to be collected from individuals. Social Security would be a minimum flat payment and cease to be tied to income. Grandfathering would almost be mandatory to gain acceptance.

I would handle businesses the same way they are handled under state sales tax law. Items purchased by a business for resale would not be taxed (grain, lumber, steel, etc.), but items that are not for resale (office furniture) would be taxed. Otherwise, the snowball effect on goods could be tremendous.

I would exempt the resale of personal items below a given threshold.

All in all, it is no different than a state and local sales taxes. People complain that it would make the employer a tax agent, but I fail to see the difference between them being responsible for witholding taxes from the employees and paying SS and collecting taxes from their customers. Again, they already do this in 45 states.

197 posted on 08/03/2007 9:06:49 AM PDT by SampleMan (Islamic tolerance is practiced by killing you last.)
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