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To: Willie Green; valkyrieanne
Now, lets take a look at some of your points and see how they hold up:
  • A family purchasing their own new home house(residential land is not taxed) for $200,000 pays NRST at a tax-included 23% rate. This means that of the $200,000 paid, $154,000 goes to the seller, and the Gov't receives $46,000 in tax.
  • A typical family purchasing their own new house today has 25% or more of their gross income extracted by the Federal government before they even think about buying a new or even an older house. That is not even counting the tax costs and costs of compliance placed on businesses of an additional 20 to 30% and embedded in the price of the new house.  

  • A landlord/investor can exploit the business exemption of NRST and purchase the same new single family dwelling tax free as a rental investment for only $154,000. Tenants pay NRST on rent and Landlords act as tax collectors for the government
  • Of course that landlord/investor also pays the same tax on the house he lives in or rents before he can ever become an "investor/landlord" in the first place. Or do you figure such folks live in NY allies and sleep on park benches.

    Additionally, a buyer of an older home, is not charged the NRST, which is the case of most first time buyers of homes.

  • The $154,000 vs. $200,000 purchase price advantage that landlord/investors enjoy over individual personal homebuyers can be expressed two ways:
    • Landlord/investors enjoy a 23% discount compared to the individual personal home buyer.
  • Actually not, as the Landlord/invester pays the 23% tax on the home he lives in whether rented or purchased, the same manner as any other individual.

    Again untrue, the landlord/investor pays the same tax on the home he rents or buys new for his personal use. All individuals are treated the same under the NRST. Infact, because the individual receives the full benefit and control of his gross income, as opposed to merely after tax income under the current system. That plus the NRST prebate paid to ALL households provides an enhanced opportunity for everyone to become investors.

    Under the current Income/Payroll tax system, the total contribution of the federal tax system(including taxes in gross wage/salaries) to the price of retail consumption goods and services is 36% for taxes alone. Including cost of compliance at around $600billion/year, increases that percentage to about a 47% total burden with respect to current family consumption expenditure caused by the federal tax system as it exists today.

     


    Frankly, I'll be happy to pay 23% of the total payment for new goods and services, or as you would put it (30% added on) to the tax free price any day. Considering that I have available my full gross pay from which to accrue tax free growth of my savings and investments.

    Compared to what we are hit with now:

    We must . . . End Tax Slavery Now; Nov '97
    by Jarret B. Wollstein

    HOW MUCH DO YOU REALLY PAY?

         According to the Tax Foundation, in 1994 the average American paid 22.4% of his or her income in federal taxes, plus 11.8% in state and local taxes - 34.2% total.

         But that's just the beginning! Dr. James Payne of the University of California found that in addition to direct taxes we also pay huge, hidden taxes including:

         For every $1 we pay in direct taxes, we spend an additional $0.65 in compliance costs. And even that figure doesn't include the cost of import duties, license fees and other government regulations. For a typical U.S. family, the real cost of taxes and regulations is at least:

    Federal taxes              22.4% of income
    State & local taxes      11.8%
    Compliance costs        22.2%
    Regulatory costs         12.7%

    70.1% of your income is now consumed by government


    393 posted on 02/09/2003 12:50:25 PM PST by ancient_geezer
    [ Post Reply | Private Reply | To 381 | View Replies ]


    To: ancient_geezer
    You said:

    
    Federal taxes           22.4% of income
    State & local taxes     11.8%
    Compliance costs        22.2%
    Regulatory costs        12.7% 
    
    70.1% of your income is now consumed by government

    Let's see. You want to eliminate the 22.4% Federal tax and replace it with a 30% (at least) National Retail Sales Tax. The other taxes will continue. So under your scheme we will have to pay a total of 77.7% total taxes. Hey, let's jump right on that.

    What makes you think state and local taxes, compliance costs, and regulatory costs will go away after the NRST is implemented? Will the Clean Air Act be repealed? Will the ADA be repealed? Will there be no one to enforce the collection of the NRST at the point of purchase?

    397 posted on 02/09/2003 1:10:47 PM PST by FreedomCalls (It's the "Statue of Liberty" not the "Statue of Security.")
    [ Post Reply | Private Reply | To 393 | View Replies ]

    To: ancient_geezer
    "All individuals are treated the same under the NRST"

    A small, but critically important nugget that some IRS lovers miss...if the numbers don't factually get some, maybe the fairness aspect emotionally will.
    431 posted on 02/09/2003 4:27:00 PM PST by ApesForEvolution (This space for rent (Not accepting bids from the United Nations))
    [ Post Reply | Private Reply | To 393 | View Replies ]

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