How about a debate on a fair tax or flat tax! Get rid of the IRS altogether and stop the slavery!
My thoughts about a “Fair Tax” versus a Flat Tax:
“The Unfair Double Tax on the Assets of Prudent Savers under the current Fair Tax Proposal”
Any double taxation of taxpayers is intrinsically unfair, unjustifiable, and ridiculous. But the transition from an income tax to a national consumption (sales) tax (Fair Tax) presents this problem.
Under the current Fair Tax proposal, the savings from earnings of prudent savers and retirees that have already been assessed income taxes that are then used for new purchases would not be exempted from the new national sales tax, resulting in a punishing double taxation.
Assets saved after income taxes have already been assessed must be exempted from a new national sales tax when these assets are used for new purchases. After all, the supposed purpose of a Fair Tax is to tax the spending of new earnings which are no longer subject to income tax, not to double tax the previously taxed funds of savers and retirees used for new spending after the Fair Tax is in force.
Why are the proponents of the Fair Tax being so hypocritical by insisting that this unfair double taxation be imposed?
This unjustified stance must be reversed before the Fair Tax proposal is implemented; otherwise this injustice will be challenged in court and would most likely be rectified at the unnecessary expense of litigation.
If the Fair Tax proponents insist on this unfair double tax, then I would have to support the Flat Tax proposal instead.
Welcome to FR.
The “fair tax proponents” do not insist on anything - they just want to get rid of the 16th and make taxation visible to the maximum extent.
The double taxation thing is an issue today too you know. Earnings are income-taxed, then taxed again when spent [at an average of 10%.] You just don’t see it.
Nevertheless, any double taxation at all is not acceptable IMO. The problem you describe is easily solved btw - just like the business inventory transitional credit was. The transitional inventory credit is to prevent inventory items in stock at the time of transition that had been purchased during the income tax from being taxed again. The same thing will happen w/ existing after-tax savings.
But the exemption will be partial b/c after-taxed savings are already taxed again when spent [about 10% as I said above.]
The important thing is to get rid of the income tax code and avoid bickering about the replacement. As you well know, the main strategy of those who wish to keep our current system is to create arguments on the minutia of any replacement to the extent that no replacement is made.