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Locked on 02/18/2008 10:17:33 AM PST by Religion Moderator, reason:
Childish behavior |
Posted on 02/16/2008 3:30:21 PM PST by xcamel
One solution to the nation's long-term fiscal problems that has gained support in recent years is the idea of replacing all federal taxes with a 23 percent national retail sales tax called the FairTax. Unfortunately, the administrative problems inherent in this proposal make it impossible to take seriously, says Bruce Bartlett, former deputy assistant secretary for economic policy at the U.S. Treasury Department.
For example, under a FairTax scheme: A worker now netting $800 per week would immediately get a $200 raise and start taking home the full $1,000 gross wage that he is paid; instead of paying income and payroll taxes, workers would pay their taxes when they buy things.
The FairTax would impose a 23 percent tax on all goods and services (this is not really correct, but for now we'll accept it at face value for analytical purposes).
Whether he is better off or not depends on what his effective tax rate is: Assuming he spends all his income and no more than that, he will be no worse off if he now pays 23 percent of his income in taxes. That is, his effective tax rate is 23 percent; in this case, the FairTax is a wash, the worker is no better off or worse off in terms of taxes than he is now.
But what if the worker is now paying less than 23 percent of his income in federal taxes? In this case, he is clearly worse off, says Bartlett: The prices of the things he buys will rise by more than his income rises from the elimination of income and payroll taxes. Conversely, if one is wealthy and in a tax bracket above 23 percent, that person would be much better off. His income and payroll taxes would fall by much more than the prices of goods and services he consumes would rise.
Source: Bruce Bartlett, "Why the FairTax Won't Work," Tax Notes, December 24, 2007.
For text:
Whether people pay 23% or 30%, the retail stores will still have to hand that money over to somebody. If not the IRS, then who?
Tell it to tyke, sport, it's a quote from his post # 4.
No sales tax in American history has been "calculated" the FT way.
That's the MO of the Free Republic Income Tax Lobby Group
The funny thing about that comment is I can point to 100 pro-fairtax threads that do exactly that for every 1 you can point to.
Morning, noon and night. Sometime, I guess between 3 AM and 3:45 AM, he runs a 200 million dollar company. He even found time to engineer the richest tax free transfer of generational wealth in American history. At least that's what all the lawyers told him when he wrote them a multimillion dollar check.
Hence the terror of losing the income tax and making all those expensive lawyers a waste of money.
You gave me/us some worthless links to blogs. Only one of which had quotes from an assistant economics professor at an obscure mid-western school. It was the most pitiful attempt at backing up an argument I have ever seen.
I believe you, but how do you really know? This income tax system is stacked against those taxpayers who cannot or do not, for whatever reason, work hard to identify tax avoidance measures that apply to them.
I just do not see why it is such a pain for many.
Sadly, it is a pain for most people.
Most of the same things the IRS asks for are the same things you need to know to run a good business or even have a solid family financial plan.
Not quite. Financial reporting for a business is similar to what is required for income tax reporting, but different enough to cause huge headaches. And, financial planning (personal, family, estate) requires data that differ considerably from what the IRS wants.
Look, I am a tax accountant. I have completed and filed a great many more income tax forms for individuals, businesses, trusts, and estates than I care to remember. Believe me, for most people, filing income tax returns is a burden, and we really need to figure out how to eliminate it.
You're making a helluva a good argument for a national sales tax.
Why should 49% pay no taxes? Is that 'fair'?
And how long will it be before it's 59%? Then 69%
Are you, by your opposition to the national sales tax, advocating that only the very top income earners bear the burden for all revenue collected by the federal government?
Isn't that the same position that Hillary, ObamaOsama and the rest of the left have taken? Is this your position, also?
Not only are you a troll, but you insist on posting semi-personal information in a pejorative manor that has nothing to do with topic, and serves only to “shoot the messenger”.
People like you give FR a really bad name.
I’d like to do a study one day about which threads bring out the most vitriol: evo-crevo, the South was right, Terri Schiavo, or “Fair Tax”. I expect it’s a toss-up. My original comment was meant as sarcasm - “You oppose Fair Tax? You’re a dirty commie!” Come on, people!
The problem is the SPENDING!!! I don’t care if you tax incomes, sales, cigarettes, or hubcaps on automobiles, the problem is out-of-control government spending!
I am certain because I study and read. I also have an accountant who was in IRS enforcement for 10 years. I started minimizing my tax burden through specific means over 20 years ago. As far as items required by the IRS and items important to business we can disagree. I learned my business operation philosophy from Wharton programs - they have served me well.
AMEN!! (again)
From the article:
"In fact, Barlett’s article has little to say about the FairTax and even less to say that’s accurate. Instead, most of his article misstates research on the FairTax, criticizes unnamed proponents of the FairTax, lambasts unattributed views of the FairTax, and engages in political punditry."
Are you Bartlett, xcamel? This is the same crap that you post on every FT thread.
What is only worth $70?
Okay. I'm pointing to this thread.
Now you list 100.
Don't worry. I don't really expect you to do that. Like most anti-FairTaxers, you're just making another absurd statement that you don't intend to back up.
OOOOOOOPs!! Cat jumped on keyboard!
! = ?
Our belovewd expert has just ,made a damned arrogant pest of himself, folks.
def.: expert — a jackass who learns more and more about less and less until he knows everything about nothing.
And companies will be able to lower their prices because...?
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