CAVUTO REPORTS THAT BUSH CONSIDERING SCRAPPING THE IRS CODE!!!

Fox News Channel | November 6, 2002 | n/a

[Tree of Liberty]

Neil Cavuto just interviewed Mitchell E. Daniels, Jr., the director of the OMB, and Neil let it be known that he's hearing rumblings that Pres. Bush is considering a total re-write of the tax code and that SecTreas O'Neill is strongly pushing a national retail sales tax!

[eleni121]

In other news I'm predicting major layoffs at HR Block.

Just to see H and R Block disappear forever would be reason enough to do away with the byzantine tax code. This is one company that has abused and connived so many for so long. I cannot tell you how many people I know (mostly immigrants making less than 20 thousand a year) who have been charged exorbitant fees for doing their taxes.

[maxwellp]

We care. In addition to all the taxes we have to pay, we have to pay an accountant $350.00 to prepare our annual tax filings with the IRS! And this is only federal taxes. Don't forget state taxes, real estate, and school taxes and all those hidden taxes no one can figure out because they are "hidden". Also, if we got rid of the IRS and went with a flat sales tax or whatever, imagine the relief in not having to plow through piles of papers and receipts. Whatever they come up with has to be better then the system we currently have. A system that most tax accountants don't even understand - a system that most IRS employees don't understand! The time is right.

[Principled]

As I understand it, and Hamilton spoke to this issue although I can't pull the cite off the top of my head, ...

He spoke extensively on the topic. The current view is that if necessities are not taxed that one does have choice in whether to pay the tax or not. It is this very fact that Hamilton believes makes an excise the best kind of tax. It has a self-limiting feature.

Hopefully, pigdog can link to the federalist papers..???

[archy]

Whether this turns out to be true or not, I do wish that Herb Meadows/ CHIEF Negotiator, had lived to see this day come when there was hope for such a possibility.

Rest easy, Marine.

-archy-/-

[carenot]

IMHO, enacting a 30% tax on virtually everything makes the tax unavoidable taking it out the class of excises.

Yup, that is why I love it.

O'corse we have to wonder where the IRS and all the tax lawyers and the CPSs would work. I say they can guard the borders or take the jobs from the illegal folk.

I really hate that.

[Excuse_My_Bellicosity]

The DemonRats have got to be having a conniption fit over this. Bummer!

[Tree of Liberty]

I do wish that Herb Meadows/ CHIEF Negotiator, had lived to see this day come when there was hope for such a possibility

As do I.

[Arthur Wildfire! March]

GW made it clear that he was reaching out to Hispanic voters. That is not a deception. You were inferring that he wants to soak the tax payer more with a national sales tax. No. He promised a tax cut. He delivered on that promise. You still choose to think he wants to tax us more?

[Principled]

...the rate would have to be set fairly high and enforcement costs would be far from negligible.

Not so Bonaparte. Compliance would be higher, and costs lower.

Look here and click "tax evasion"

[carenot]

The VAT works like a sales tax. The difference is that it is not imposed directly on consumers at the checkout, as state and local sales taxes are, but rather on producers. The tax is built in to the prices of goods and services.

Durn it! The NRST is not a VAT!

[weikel]

I was a bot during his 1st year. Most of his actions during the 1st half of the 2nd year disgusted me( and seemed to be aimed at pleasing those who would hate any Republican no matter what). I really hope he goes for this and pulls it off. But ill wait and see.

[Taxman]

Actually, the NRST will increase the amount of money the federal government receives.

All tax proposals must be, by law, "revenue neutral," as scored by the Congressional Budget Office and Joint Tax Committee.

Well, CBO and JTC use "static" scoring; i.e., they do not take into account the behavior of taxpayers when faced with increasing or decreasing tax burdens. An increase in tax rates is scored as an increase in revenues and a decrease in tax rates is scored as a decrease in tax revenues.

The national experience is just the opposite: historically, an increase in tax rates actually results in a decrease in revenues and a decrease in tax rates actually results in an increase in tax revenues! (Supply side economics really does work!)

For whatever peverse political reasons, the CBO and the JTC have never gone to dynamic scoring of tax legislation, and as a result, their estimates of the fiscal effect of changes in the tax code are always wrong.

There is an effort underway to change the way the CBO and JTC score legislation, but for the moment, they are still scoring on a static behavior.

The NRST lowers the overall tax burden on individuals, and will cause, all other factors being equal, an increase in federal revenues. And we already know that the feds know how to spend the money!

[Principled]

The personal exemption is a matter of fairness, and too many people are used to it. The same with the home mortgage-interest deduction.

Personal exemptions are designed to allow individuals to keep a little more of their own money untaxed. Well, the nrst allows individuals to keep 100% of their money untaxed. Similarly, the home interest deduction is designed to allow homeowners to pay interest on mortgages with un-taxed earnings. Well under an nrst, 100% of earnings are untaxed.

The 401(k), though, is VERY important. The more people invest, the more of a stake they have in fiscal conservaitsm, low taxes, and all of that.

A 401k allows individuals to invest tax-deferred...but 401k still pays tax on withdrawal. Under nrst, ALL investment income is tax free- never is any income of any kind taxed. Yes, investment in the US will boom like never.

BTW the nrst DOES do away with corporate taxation - all of it, including payroll taxes.

[Taxman]

The legislation, H.R. 2525 and H.R. 2717, have both been vetted for Constitutionality, and passed. No problem. Linder and Tauzin are not fools!

[AmericanDave]

The markets! They will go crazy when people have 25% more money to invest, and not pay tax on the gains! No tax on death! ONLY when you buy! And the richer they are the more and more expensive toys they buy! I'm thinking "the Bush Rockey Mountains".

[carenot]

I’d carve it myself.

I am an old woman or I would help you. But I do have 4 sons and 9 grandsons that will help you.

I must send off another e-mail to Stenholm. He always answers me.

[Temple Owl]

I'm not being smart. But we do have to finance the nation. What would be the best and fairest way of doing that?

[OldFriend]

Kewl!! Could he please scrap the entire dem party too while he's at it!!

[ladyjane]

Sorry Arthur. Didn't mean to imply that George is a bad guy. I think he is a decent person and very smart. I don't think George wants to tax us more. But I *do* think that governments, by their very nature, are addicted to raising money. And further I think that changes in taxation usually result in tax increases for most of us. On top of that the changes cause lots of disruption. e.g., H&R Block suffers; bond salesmen lose their jobs; the real estate market gets hit; 401k's are worth less, and on and on. They're gonna get us one way or another. Someof us will be hit harder than others.

[AmericanDave]

Don't forget we retain the corporate tax, which produces so much of the annual revenue, and would still require irs agents, it still would require corporate accountants and tax specialists.