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House Majority Leader Signs On To Linder’s Bill Abolishing the IRS
United States Congressman - John Linder ^ | April 3rd, 2003 | Congressman John Linder (R-Georgia)

Posted on 04/13/2003 12:23:25 PM PDT by Remedy

FAIRTAX BUILDS MOMENTUM
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.

The FairTax

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


TOPICS: Constitution/Conservatism; Crime/Corruption; Culture/Society; Government; News/Current Events
KEYWORDS: axixofevil; fairtax; johnlinder; taxreform; tomdelay
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To: rolling_stone
I couldn't let this go without correction.

( 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.

141 posted on 04/15/2003 9:05:10 AM PDT by lewislynn
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To: lewislynn
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

I don't believe this applies to resale of goods for less than original purchase price.

142 posted on 04/15/2003 9:28:36 AM PDT by TaxRelief
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To: farmfriend
got it!!
143 posted on 04/15/2003 4:26:54 PM PDT by Harleys Mom (I remember 9-11-01)
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To: farmfriend
From LeRoy, National Grange Legisltive Director

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.

144 posted on 04/15/2003 11:04:52 PM PDT by christie
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To: christie; Harleys Mom
I couldn't agree with you more. Just so you know, LeRoy is not the Master (an old English farm term not related to slavery). He is the Legislative Director (paid lobbyist) and is bound by Grange policy which is established at the local level. It must pass through State Convention and then National Convention in order to become national policy.
145 posted on 04/15/2003 11:13:20 PM PDT by farmfriend ( Isaiah 55:10,11)
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To: keyd
So in the end you wouldn't pay 137.66 but closer to what you pay today except taxes are included.

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.

146 posted on 04/15/2003 11:28:01 PM PDT by FrogMom
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To: Leto
`
147 posted on 04/16/2003 8:55:10 PM PDT by Coleus (RU-486 Kills Babies)
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To: rolling_stone; Remedy
The question that rolls around in my head is; Are all the fees we are charged by different agencies going to finally be considered as taxes or will these be kept separate as they are now?

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.

148 posted on 04/17/2003 8:50:37 PM PDT by B4Ranch ( "It's too late to work within the system, but too early to shoot the bastards".Claire Wolfe)
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To: Remedy
Bump for Saturday read.
149 posted on 04/17/2003 8:52:55 PM PDT by mickie
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To: Remedy
The FairTax will dramatically reduce prices, protect and ensure funding of Social Security and Medicare

That's the only drawback I see to the NRST... I want to see these programs bankrupted & abolished. :)

150 posted on 04/17/2003 8:57:42 PM PDT by Sloth ("I feel like I'm taking crazy pills!" -- Jacobim Mugatu, 'Zoolander')
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To: lewislynn
You are right, the example I gave was incorrect...must be the three days and nights staring at forms and figures we have with our current system...I do believe there is a domino effect but the example I gave was poor...

As a realistic person, I feel it mighy be easier for more people to accept the other NRST (HR 2717)which does not do away with the payroll taxes and has a 15% inclusive (17.65) rate....this would allow accountants and such a bone and lower the general rate making it more palatable...something of a compromise...it also taxes used property but gives a credit to first buyer so that a property is taxed only once...
151 posted on 04/17/2003 9:11:57 PM PDT by rolling_stone
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To: B4Ranch
The question that rolls around in my head is; Are all the fees we are charged by different agencies going to finally be considered as taxes or will these be kept separate as they are now?

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...

152 posted on 04/17/2003 9:19:58 PM PDT by rolling_stone
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To: rolling_stone
I see the Feds possibly shutting down the IRS but then I see those employees going to work for State Franchise Tax Boards, County Tax Boards and City tax Boards.

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.

153 posted on 04/17/2003 9:29:42 PM PDT by B4Ranch ( "It's too late to work within the system, but too early to shoot the bastards".Claire Wolfe)
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To: lewislynn
"Pricing is a struggle not for lower prices but for the highest prices(profit) possible. If it wasn't they would never go up..."

I hate to tell you, LL, but maximizing prices and maximizing profits are NOT the same thing. I don't have time to go into it here, but I suggest that you pull out any freshman economics textbook and look for the explanation of elasticity of demand.
154 posted on 04/18/2003 5:03:52 PM PDT by PhilWill
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To: PhilWill
"Pricing is a struggle not for lower prices but for the highest prices(profit) possible.

How about this professor?:

Pricing is a struggle not for lower prices but for the highest prices/profits possible.

155 posted on 04/18/2003 8:07:43 PM PDT by lewislynn
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To: lewislynn
"Pricing is a struggle not for lower prices but for the highest prices/profits possible."

I will try this again. The highest profits are NOT obtained by pricing your product as high as possible. Do you honestly believe that Wal-Mart became a huge retailer by somehow getting customers to pay more for their "stuff" than they would with their competitors? Or could it be that by buying in volume they are able to pass along unit cost savings to customers and build market share?

You only have pricing power if you have a proprietary product that has benefits and features that your competiton cannot match. Is anyone else having as much trouble understanding this as LewisLynn is?
156 posted on 04/21/2003 4:59:34 PM PDT by PhilWill
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To: PhilWill
I honestly think Macroeconomics should be a required course in ALL public high schools. It would end a lot of confusion and ignorance.
157 posted on 04/21/2003 5:07:49 PM PDT by Windcatcher ("So what did Doug use?" "He used...sarcasm!")
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To: PhilWill
Is anyone else having as much trouble understanding this as LewisLynn is?

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...

158 posted on 04/21/2003 6:14:13 PM PDT by lewislynn
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To: lewislynn
"Oh, and only an idiot in business would beleive that price is the only way to compete... "

There you go, Louie, setting up those straw men again. Noone said that price was the ONLY area of competiton in business.
159 posted on 05/17/2003 10:40:07 PM PDT by PhilWill
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Comment #160 Removed by Moderator


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