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 Will the Clean Air Act be repealed? Will the ADA be repealed?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?
Well, the truth is that the boogeyman communist IRS Gestapo will simply recycle into the kinder, gentler Social Security Administration Gestapo who will be handing out cradle-to-grave montlhy rebate checks to everybody in the nation. So gooberment employees don't have to worry about actually losing their jobs.
But if you keep asking questions like this, I'm sure the NRST shills will even promise that it'll cure bad breath and athlete's foot. After all, a national sales tax is the cure for everything else that torments our nation!
You want to eliminate the 22.4% Federal tax
A 22.4% tax with respect to gross income. 0.224 * (gross_expenditure + investments)
and replace it with a 30% (at least) National Retail Sales Tax.
A 23% tax with respect to gross consumption expenditure 0.23 * (consuption expenditure - used_goods purchases.) With the price of consumer goods falling by the lower costs of tax compliance associated with sales taxes as opposed to income/payroll taxes.
The other taxes will continue.
All Federal taxes make up 22.4% of gross personal income. Those taxes are removed to be replaced by a 23% tax on your consumption_expenditure less used goods purchases. More than 90% of the costs associated with income/payroll tax compliance with the current system disappear (.224 * .65)%.
So under your scheme we will have to pay a total of 77.7% total taxes. Hey, let's
You don't save or invest? You buy nothing used. You don't like consumer price reductions, no federal taxes nor taxes imposed on non retail business?
Somehow I don't see the tax burden increase that your sloppy arithmetic and analysis imply. I do however see a substantive decrease from removing costs of tax compliance.
Will the Clean Air Act be repealed? Will the ADA be repealed?
With the NRST all federal taxes become visible to the electorate. How long do you figure that big government can resist an electorate that is confronted with 23% of their grocery bill going out to largess each time they go to the super market.
23%........... HR2525 (NRST) rate on consumption expenditure
14.91% ..... rate if Social Security and Medicare were eliminated
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.
Hmmmmmm....... It's do able, with time and effort, once the blinders are removed from the electorate.
Will there be no one to enforce the collection of the NRST at the point of purchase?
Try the state tax authority that enforces the remittence of retail sales taxes in most states now. That is who is charges with administration and enforcement of the NRST under Linder's bill:
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
What makes you think state and local taxes, compliance costs, and regulatory costs will go away after the NRST is implemented?
As far as State local governments go, hey you have to fight those battles for yourself. The Constitution does not allow the Federal government to dictate what your state hits you with. I would note however that most state income tax systems ride piggyback on the federal income and payroll tax laws. Do away with the Federal income and payroll taxes and implement the NRST, that gives a platform and encouragement to change state and local tax laws.
Its up to you.