A VAT is an invisible and insidious tax. Do you know how much of your $1.78 per gallon unleaded is tax? I thought so. The most likely scenario is that we'd end up like Europe, with both a VAT and an income tax, and a larger welfare state.
Ditto that. Look at the German economy. 11% unemployment.
Fair Tax Act of 2003 (Introduced in House)
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
Sec. 1. Short title; table of contents.
SEC. 2. CONGRESSIONAL FINDINGS.
TITLE I--REPEAL OF THE INCOME TAX, PAYROLL TAXES, AND ESTATE AND GIFT TAXES
SEC. 101. INCOME TAXES REPEALED.
SEC. 102. PAYROLL TAXES REPEALED.
SEC. 103. ESTATE AND GIFT TAXES REPEALED.
SEC. 104. CONFORMING AMENDMENTS; EFFECTIVE DATE.
`SECTION 1. PRINCIPLES OF INTERPRETATION.
`SEC. 2. DEFINITIONS AND SPECIAL RULES.
`CHAPTER 1--INTERPRETATION; DEFINITIONS; IMPOSITION OF TAX; ETC.
`SEC. 101. IMPOSITION OF SALES TAX.
`SEC. 102. INTERMEDIATE AND EXPORT SALES.
`SEC. 103. RULES RELATING TO COLLECTION AND REMITTANCE OF TAX.
`SEC. 201. CREDITS AND REFUNDS.
`SEC. 202. BUSINESS USE CONVERSION CREDIT.
`SEC. 203. INTERMEDIATE AND EXPORT SALES CREDIT.
`SEC. 204. ADMINISTRATION CREDIT.
`SEC. 206. INSURANCE PROCEEDS CREDIT.
`CHAPTER 3--FAMILY CONSUMPTION ALLOWANCE
`SEC. 301. FAMILY CONSUMPTION ALLOWANCE.
`SEC. 303. MONTHLY POVERTY LEVEL.
`SEC. 305. CHANGE IN FAMILY CIRCUMSTANCES.
`CHAPTER 4--FEDERAL AND STATE COOPERATIVE TAX ADMINISTRATION
`SEC. 401 AUTHORITY FOR STATES TO COLLECT TAX
`SEC. 402. FEDERAL ADMINISTRATIVE SUPPORT FOR STATES.
`SEC. 403. FEDERAL-STATE TAX CONFERENCES.
`SEC. 404. FEDERAL ADMINISTRATION IN CERTAIN STATES.
`SEC. 405. INTERSTATE ALLOCATION AND DESTINATION DETERMINATION.
`SEC. 406. GENERAL ADMINISTRATIVE MATTERS.
`CHAPTER 5--OTHER ADMINISTRATIVE PROVISIONS
`SEC. 501. MONTHLY REPORTS AND PAYMENTS.
`SEC. 504. REGISTRATION CERTIFICATES.
`SEC. 506. BURDEN OF PERSUASION AND BURDEN OF PRODUCTION.
`SEC. 507. ATTORNEYS' AND ACCOUNTANCY FEES.
`SEC. 508. SUMMONS, EXAMINATIONS, AUDITS, ETC.
`SEC. 510. TAX TO BE SEPARATELY STATED AND CHARGED.
`SEC. 511. COORDINATION WITH TITLE 11.
`SEC. 512. APPLICABLE INTEREST RATE.
`CHAPTER 6--COLLECTIONS; APPEALS; TAXPAYER RIGHTS
`SEC. 602. POWER TO LEVY, ETC.
`SEC. 603. PROBLEM RESOLUTION OFFICES.
`SEC. 606. INSTALLMENT AGREEMENTS; COMPROMISES.
`SEC. 703. GOVERNMENT PURCHASES.
`SEC. 704. GOVERNMENT ENTERPRISES.
`SEC. 705. MIXED USE PROPERTY.
`SEC. 706. NOT-FOR-PROFIT ORGANIZATIONS.
`CHAPTER 8--FINANCIAL INTERMEDIATION SERVICES
`SEC. 801. DETERMINATION OF FINANCIAL INTERMEDIATION SERVICES AMOUNT.
`SEC. 803. TIMING OF TAX ON FINANCIAL INTERMEDIATION SERVICES.
`SEC. 805. BASIC INTEREST RATE.
`SEC. 806. FOREIGN FINANCIAL INTERMEDIATION SERVICES.
`CHAPTER 9--ADDITIONAL MATTERS
`SEC. 901. ADDITIONAL MATTERS.
`SEC. 902. TRANSITION MATTERS.
`SEC. 903. WAGES TO BE REPORTED TO SOCIAL SECURITY ADMINISTRATION.
`SEC. 904. TRUST FUND REVENUE.
`SEC. 905. WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS.
SEC. 202. CONFORMING AND TECHNICAL AMENDMENTS.
`SEC. 616. EXTENSION OF TIME FOR PAYING TAX.
`SEC. 6601. INTEREST ON OVERPAYMENTS AND UNDERPAYMENT.
`SEC. 7451. FEE FOR FILING PETITION.
SEC. 301. PHASE-OUT OF ADMINISTRATION OF REPEALED FEDERAL TAXES.
SEC. 302. ADMINISTRATION OF OTHER FEDERAL TAXES.
SEC. 303. SALES TAX INCLUSIVE SOCIAL SECURITY BENEFITS INDEXATION.
Consumption tax = Value Added Tax.= Rate * [Income - Savings]
A VAT is an invisible and insidious tax.
A single stage, single rate Retail Sales Tax is not a VAT(a specialized tax on business income at all levels of production), nor is it hidden as it is totally visible to the consumer(aka the Electorate).
H.R.25
SPONSOR: Rep Linder, John (introduced 01/7/2003)
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.
Refer: http://www.fairtax.org & http://www.salestax.org