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
( 4% less taxes 3-9 %less (material) payroll taxes, =7 to 13% less cost of materials),end result 7-13 lower cost of materials, 4% less taxes, 3 to 9% less (production) payroll=14 to 26% less expenses. Dominoes goes both ways....
You ever try standing them up using one dominoe in the same way you knock them down? It's not a multiplier. Using your own math, at what point do you get to more than 100% or absolutely free?...
A 4% reduction at each of 25 stages is still only 4%, not 100%.
Your own numbers on the high side would be about 8% reduction.
I don't believe this applies to resale of goods for less than original purchase price.
No, the National Grange does not support abolition of the IRS. We do not support abolition of the federal income tax. We support income tax reform. We do support abolition of the death tax. We strongly oppose a national sales tax or value added tax.
I guess any group that is headed by someone who calls himself master doesn't mind that the rest of us are slaves.
The enormous amount of time it takes me to do my taxes is non productive time. Add to that the intrusion and control by the IRS and it's not about the money.
I don't believe that.
Nikes used to cost $100. It cost $40 bucks to make them, materials and labor with the largest share of the cost being labor. They now make them overseas in sweatshops for MUCH less labor. They still cost $100. I don't believe prices will drop as much as you hope.
You could reduce taxes to 1% and allow the agencies to continue to set their own fees as they wish which will result in more taxes than we currently pay. It would just travel a different route to the agency treasury.
That's the only drawback I see to the NRST... I want to see these programs bankrupted & abolished. :)
You could reduce taxes to 1% and allow the agencies to continue to set their own fees as they wish which will result in more taxes than we currently pay. It would just travel a different route to the agency treasury.
Good point, as I see it the user fees and other fees/taxes not deliniated would continue, such as federal gasoline taxes, alcohol, tobacco, etc.....true the powers to be could increase and add more of these taxes but probably would meet huge resistance and a cry of foul...JMO..they already can do the same thing now...
Having better diversity amongst the tax collectors thereby reducing the size of the groups resisting various increased taxes.
The one advantage I do see is the reduction in tax laws. Possibly, just possibly you and I will be able to comprehend them without a Masters Degree.
How about this professor?:
Pricing is a struggle not for lower prices but for the highest prices/profits possible.
I'm not having trouble understanding anything. Maybe you'd like to qualify yourself by giving me your business experience first. Walmart is succesful but it isn't the business model every succesful business lives by, or can live by either.
In spite of what YOU say or what your professor said/says, price pressure is UP not down...finding the balance is the key....Oh, and only an idiot in business would beleive that price is the only way to compete...
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