Posted on 04/13/2003 12:23:25 PM PDT by Remedy
FAIRTAX BUILDS MOMENTUM The FairTax
House Majority Leader Signs On To Linder’s Bill Abolishing the IRS Washington, D.C. - Congressman John Linder (R-Georgia) is pleased to announce that he has added more than 20 co-sponsors – including House Majority Leader Tom DeLay (R-Texas) – to his innovative tax reform legislation, the FairTax. Linder’s bill, H.R. 25, would abolish all federal income taxes, death taxes, capital gains taxes, and payroll taxes, and replace them with a national retail sales tax.
"The momentum behind the FairTax continues to build, and Majority Leader DeLay’s co-sponsorship is just the latest signal that support for the FairTax is growing," said Linder. "The bill now has 21 co-sponsors – more than any other fundamental tax reform legislation in the House – and they represent a bipartisan coalition of members from across the nation. Not only do my colleagues recognize the harm done to the American people by the overly intrusive and burdensome income tax code, their constituents recognize it every April 15th," continued Linder.
The addition of DeLay and 14 other co-sponsors in the last month alone is just the latest positive news regarding the FairTax. In February, the annual report of the White House Council of Economic Advisers stated for the first time that elimination and replacement of the complex and arcane federal income tax code with a consumption tax would increase efficiency in the tax system and promote investment and growth. The report stated that a consumption tax, like the FairTax, could very well be the most suitable replacement for the income tax system.
I am the primary sponsor of The FairTax. The FairTax is one of the most exciting proposals to ever reach the American people. It offers long-needed tax relief – in the form of lower prices, nearly nonexistent compliance costs, and the ability to choose how much to spend in taxes – to all Americans, while eliminating the income tax and allowing Americans to keep 100 percent of their paycheck. The FairTax will dramatically reduce prices, protect and ensure funding of Social Security and Medicare, empower the low-income earners, and put choice and control back into the hands of every American. All the crucial elements are in place: a public that is eager and ready for a fairer tax system, and a Congress willing to seriously consider genuine tax reform. To be competitive in the next century and to renew the American dream, we must change the way we fund our national government. The FairTax Act:
• Repeals the all corporate and individual income taxes, payroll taxes, self-employment taxes, capital gains taxes, estate taxes and gift taxes.
• Imposes a revenue-neutral national sales tax on all new goods and services at the point of final purchase for consumption. Business-to-business transactions and used products (which have already been taxed) are not subject to the sales tax.
• Rebates the sales tax on all spending up to the poverty level. Results of the FairTax:
• Dramatically reduce the costs of goods and services by 20 to 30 percent.
• Allow you to keep 100 percent of your paycheck, pension, and Social Security payments.
• Gross Domestic Product will increase by almost 10.5 percent in the first year after enactment.
• Compliance costs would decrease by 90 percent.
• Real investment would initially increase by 76 percent relative to the investment that would be made under present law. While this increase would gradually decline, it remains 15 percent higher than under the existing tax structure.
• Exports would increase by 26 percent initially and would remain more than 13 percent above the level under the current tax system.
• Real wages will increase.
• Increases incentives to work by as much as 20 percent in many households, leading to higher economic growth and efficiency.
• Interest rates will fall 25 to 35 percent.
If you would like view the new FairTax PowerPoint slide presentation or consider the significant benefits of the FairTax in greater detail, please take some time to visit the "FairTax" section of my website located in the "Resource Headquarters." Which of the following tax systems do you prefer?
Current system is fine.:4%
IRS and a flat income tax:13%
A national sales tax.: 78%
None of the above.: 4%
760 total votes
Hmmm, how can the average homeowner become a business investor? :)
That would be one opinion, but a 13% increase in price + 30% tax.
The sales tax is revenue neutral, there is no elimination of tax, only a shift of the burden.
JMO it, like the "sales tax" tag is done to deceive.
And there are a lot of details to work out. Do you tax food, used goods, garage sales, barter?
The argument that employer paid payroll taxes aren't part of the wage is a battle yet to be fought.
I'm curios to know how you can expect both lower prices and increased profits...Untill now you claimed the production chain will be less due to no income tax and the result of which would result in 20 or 30% lower prices, now you're saying it could mean "more profits"...Meaning forego the lower prices for higher profits...That's exactly what I've been saying, you can't guarantee nor predict what the outcome would be.
As a business man, (and I am) knowing there are a bunch of people fooled into thinking they have a pocket full of tax free money, the last thing I'd do is lower my price.
If price was the only factor in competition people wouldn't buy a Mercedes when they could have all the same features in a Hyundai for less money.
Exactly. How taxes are collected is entirely separate from how much is collected. There's no question that the federal government should tax less and spend less. But there is a need for some taxation, and the current income tax is just about the worst possible system.
The argument that employer paid payroll taxes aren't part of the wage is a battle yet to be fought.
It doesn't matter whether it is part of the wage or not, the employee does not receive the money only the benefits. The benefits are included in the cost of the new NRST and payroll taxes are moved from income collection to consumption collection.
Yes, no, no, and no. Check out the FairTax site, these issues have been considered.
I got is straight from the source.
The Federal Government determine's a state's tax liability based on the population of each state.
Each state government raises revenue however (income, property, sales, what-have-you) and sends their percentage on to the Fed.
This is taxation with representation.
I'm curios to know how you can expect both lower prices and increased profits...Untill now you claimed the production chain will be less due to no income tax and the result of which would result in 20 or 30% lower prices, now you're saying it could mean "more profits"...Meaning forego the lower prices for higher profits...That's exactly what I've been saying, you can't guarantee nor predict what the outcome would be.
I said or not and, and I also did not say prices would drop 20 to 30% that was what Jorgensen said. I said :As for payng the exorbitant sales tax, it would be on products or services that are reduced in price by competition and lower costs.....not so exhorbitant after all IMO if prices dropped only 15-20%....
As for predicting prices, my comment was Simple economics& history reasonably predicts what the competitive market will do. No I cannot guarantee what prices will do but with substantial experience in pricing and competition, I do have a few clues. I explained in depth my thoughts as to why prices would drop.
As a business man, (and I am) knowing there are a bunch of people fooled into thinking they have a pocket full of tax free money, the last thing I'd do is lower my price.
I previously addressed this issue, you are free to price your product or service as you wish, but the market will decide what the majority will do. High profits will result in more competition (price competition or more suppliers) and resulting lower prices and profits in a free market. As I said before a transition period will take place until equilibrium is reached...Supply & Demand.
If price was the only factor in competition people wouldn't buy a Mercedes when they could have all the same features in a Hyundai for less money.I never said price was the only factor in competition, you are confusing price competition with competition. My statement was Competition, supply & demand is what determines prices, whether there is an income tax or consumption tax or no tax.Certainly there are significant other factors than price, quality, service, durability, esthetics etc, that are a part of competition. Price competition is at it's purest when identical products or services are available from numerous similar suppliers.
As for a Mercedes and a Hyundai, I don't consider them close competition, but a Porsche or Lexus could be. Apples and Oranges. Once again I suggest you check out the link below for info on equilibrium:
http://www.digitaleconomist.com/equilibrium.html
I appreciate you taking time to debate the NSRT and point out your concerns. This time of year, unfortunately makes me wonder why the heck the government (people) allow the current system to continue. Many wasted hours and much money thrown away in non-productive tasks that IMO needs to be changed.
I happen to agree (as does the law) that the employer portion of the payroll tax is a tax on the employer. But it's been drummed into the heads of employees that that is part of their wage package...Like I said, if this tax comes to pass (it won't) the battle for that FICA tax money is yet to be fought.
The employee's could claim since the new tax burden will be shifted directly on them, it has to include the money their employer used to pay for their SS benefits, that they should be entitled to that money payed on their behalf....My bet is they'll win the war.
Barter?...Yes.
`(f) BARTER TRANSACTIONS- If gross payment for taxable property or services is made in other than money, then the person responsible for collecting and remitting the tax shall remit the tax to the sales tax administering authority in money as if gross payment had been made in money at the tax inclusive fair market value of the taxable property or services purchased.
Most people do not notice the amount of tax taken out of their paychecks now. I would guess that they would notice if the prices of goods start to spiral up due to increases in the so-called Fair Tax. Well, maybe not!!
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