How far did that crazy scheme go before it was struck down?
As far as a committee proposal and died there. Unfortunately that is just one of many coming at us (e.g. Bush's commodities tax first mentioned), just waiting in the weeds and a full transaction tax one can be introduced again whenever they figure they have the backing for it.
See:
http://www.smartvoter.org/2000/11/07/ca/state/vote/camahort_j/
Far as I can see, the only protection we can ever have against these kind of hidden taxes, is to work to implement a single national tax that is totally visible to the electorate and outlaw all the rest. The only ones that seem to fit that bill are a pure Retail sales taxes and excises in the nature of fuel taxes.
Everything else gets buried in the price structure of consumer goods and services leaving the electorate unaware of the real burden placed on them.
For example the Individual Income Tax return(1040) that captures everyone's attention each April, is merely a partial VAT accounting sheet the government coerces individuals, held at ransom, into filling out. Its misdirection puts blinders on the eyes of the electorate, and totally distorts their perceptions as to the real impact of taxation in our lives.
Every man woman and child in the nation, pays federal taxes through that VAT.
DO YOU PAY YOUR INCOME TAX
AT THE SUPERMARKET?
by D. Sherman Cox J.D. L.L.M. Taxation
The full impact of the federal tax system(taxes in gross wage/salaries & other compensation + business income/payroll taxes) added onto the base(taxfree) price of retail consumption goods and services is 36% for federal taxes alone.
All wages and the taxes on them are paid for out of sales receipts to business,(i.e. consumption expenditure).
Federal tax revenues collected as % of current family expenditure = fed/(1-state-fed-savings) =
23.5/(1-.235-0.102-0.012) = 36.09%
If we add in the cost of federal tax compliance, planning, litigation & enforcement, the percentage that truely represents the burden on the family due to the Federal income/payroll tax system, product prices are increased by more than 55% over taxfree prices.
Where Have All the Dollars Gone?
How the government robs Peter to pay him back.
By economist James L. Payne, Reason Magazine February '94When the overhead costs are added together, (24 percent compliance costs, 33 percent disincentive costs, and 8 percent other costs), they total 65 percent of tax revenue.
Current total Federal tax revenues are about $1900billion, more than $1,000 billion additional dollars are added on onto consumption prices due to the business costs of complying with the federal income/payroll tax laws.
The percent total current federal burden (taxes + compliance costs) of consumption dollars = 36*(1900+1000)/1900 = 54.95% economic burden added on to base retail(i.e. taxfree) prices.
Too bad that citizens don't get a receipt detailing those "hidden sales taxes" buried in their consumption purchases. If they ever did, some of those 70% of the public clamoring for more from government, thinking someone else foots the bill, might be tempted to change their mind.
EBUCK
Everyone should read this!!!
EBUCK