The elimination of corporate income taxes could reduce prices in the 2-3% range. Even if the highly improbable 20% or 30% reduction came to pass, that does not negate the fact that the tax burden is shifted from higher to lower income taxpayers. This effect could be partially offset by increasing both the FCA and NRST rates. That, in conjunction with a Tobin tax concept could have more appeal, assuming the NRST could be effectively enforced.
Isn't there a danger of massive tax evasion with NRST---just as there is with state and local sales taxes? Also, won't there be plenty of shenanigans perpetrated through the protection of "corporate" purchases? It seems like there would be.
I guess I'll put this aside, for now. If and when there is a real push to enact this legislation, I imagine there will be many objective studies to evaluate. Most of the currently available research appears to be biased material masquerading as serious research on both sides (e.g., LewisLynn linked to a study from a reputable source that showed the opposite of NRST contentions).
that does not negate the fact that the tax burden is shifted from higher to lower income taxpayers.
I'll take the straightening out of the distribution from what it is now, thank you. And I have nowhere near the income that being a "higher income" taxpayer. is an issue. Been in the great center most my life, moved to the low income but large resource bunch awhile back.
This effect could be partially offset by increasing both the FCA and NRST rates.
Sorry! Not interested. 23% is more'n enough to do the job. I figure on doing everything I can to decrease that rate myself.
23%........... HR2525 (NRST) rate
14.91% ..... rate if Social Security and Medicare were privatized
14% .......... rate if Nat'l Endowment for the Arts were eliminated
11.9%........ rate if Dept. of Education were eliminated
10% .......... rate if welfare were eliminated
9.8%.......... rate if foreign aid were eliminated
etc.
That, in conjunction with a Tobin tax concept could have more appeal,
You may be interested in hiding tax burden from the electorate as a whole, I'm not.
To remove the perception of the tax burden of the individual, is to remove the goad which assures accountability of government to the electorate. Federal tax rates are high because a majority of the electorate do not share proportionately in the burden their demand for largesse imposes on the minority of citizens.
The siren call for representation without taxation is the formula that got us where we are at today. The ability to hide or disguise taxation from the view of large sectors of the electorate allows the Congress to get away with the creation of the evergrowing monster that it fosters.
Liberty and freedom have a price, responsibility. If that price is avoided there are no brakes on the growth of government, the ultimate result is the end of freedom through creeping socialism.
assuming the NRST could be effectively enforced.
Oh it will be, I assure you. By cutting excess largess from the federal budget.
"Imposts, excises, and, in general, all duties upon articles of consumption, may be compared to a fluid, which will, in time, find its level with the means of paying them. The amount to be contributed by each citizen will in a degree be at his own option, and can be regulated by an attention to his resources. The rich may be extravagant, the poor can be frugal; and private oppression may always be avoided by a judicious selection of objects proper for such impositions. "
"It is a signal advantage of taxes on articles of consumption
that they contain in their own nature a security against excess.They prescribe their own limit, which cannot be exceeded without
defeating the end proposed - that is, an extension of the revenue.When applied to this object, the saying is as just as it is witty
that, "in political arithmetic, two and two do not always make four."If duties are too high, they lessen the consumption; the collection
is eluded; and the product to the treasury is not so great as when
they are confined within proper and moderate bounds.This forms a complete barrier against any material oppression of the
citizens by taxes of this class, and is itself a natural limitation of
the power of imposing them.Impositions of this kind usually fall under the denomination of indirect
taxes, and must for a long time constitute the chief part of the revenue
raised in this country." (Emphasis added).
The difference between you and I, I am not in the least interested in maintaining the state of government in it current bloated form. I fully hope and expect the NRST to open the electorate's eyes and demand a long over due change.
The Honorable James DeMint (R-SC)
United States House of RepresentativesTHURSDAY, APRIL 5, 2001
12:00 noon"In 1996, Congress passed a historic welfare reform law that has dramatically reduced the number of Americans who depend on welfare. In spite of this positive development, Representative DeMint is concerned about the steady growth of a welfare/entitlement state that extends well beyond the poor and is forcing millions of middle income Americans into dependency.
There has been a shift in the relationship between individuals and government, he argues, such that fewer and fewer are paying taxes at the same time that more and more are receiving increasingly generous benefits. If it becomes the case that most voters do not bear a financial burden for this largess, then there will be little to restrain--and significant political incentives to encourage--the continued growth of government. And at that point, DeMint warns, we have reached a major crisis in our democracy.
Milton Friedman as quoted by Northwest Florida Daily News, 10-16-2000:
- "If we're to have an income tax, it's a good thing for everyone to pay at least a nominal amount," he said. "If non-taxpayers become a majority in society, what would restrain them from voting for ever higher taxes on others?"
Walter Williams, World Net Daily, 10-25-2000
If you're among those who pay little or no federal income taxes, what do you care about tax cuts? Moreover, if you think tax cuts pose a threat to government handout programs, you might be openly hostile and support Al Gore's silly "risky scheme" talk. So many Americans paying little or no federal taxes makes for a natural spending constituency. It's like me in the restaurant: What do I care about extravagance if you're footing the bill?
Isn't there a danger of massive tax evasion with NRST---just as there is with state and local sales taxes?
There is a danger of evasion under any system, all it takes under the current system is an individual hide income through cash transactions and avoid filing a return.
Under the NRST, it takes two to tango, and the seller is on the hook for remitting the tax whether or not any purchase has paid. The business is held liable for not remitting a tax he is paid to collect from the customer. It's the business that takes all the risks not his customer.
You expect the NTST will be worse than the income tax? I've got a some sea front property down in southern Colorado to sell yah.
Also, won't there be plenty of shenanigans perpetrated through the protection of "corporate" purchases? It seems like there would be.
The state tax authorities, who charter and licenses retail businesses and keep track of em for tax purposes, don't seem to have much trouble with such. 80 percent of retail sales go through 10% of the businesses. Kmart is not likely to pull many such shennanigans. If people want to call themselves businesses and get the license that would make purchases tax free even possible(for non-consuption purposes), they expose themselves to the State Tax Authority evil eye.
You may be inclined to go that way, but I see no reason to when there are plenty of opportunities to earn a living with out being bothered with collecting NRST, and there is more than sufficient means to live and keep a retail sales tax I might pay as a consumer well below the threshold where it would make a difference legally or even mean much in my budget if I were to be inclined to not pay such a tax.
You really should watch your "it seems", "I say", "I think", and keep the discussion to something less than total speculation.
(e.g., LewisLynn linked to a study from a reputable source that showed the opposite of NRST contentions).
I've seen Lewislynn's sources, they usually end up saying opposite of what he contends, or has a heavy political agenda in favor of the status quo or a VAT. Neither of which I care to support.
You find anything different and we will discuss it.