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
FRegards,
That would be an upside - but if people continue to buy used items or fix the items they have - how will the government generate revenue? I wonder if they have calculated their expected revenue based on present consumerism - I think this kind of tax will change that a lot.
It sounds great that any of us can pay no taxes if we want to work it that way. I believe so many will do that - they will have to search for other ways to generate revenue.
And what about capital gains? (Remember, that is some peoples only income - including people like Warren Buffet)
The bottom line is non productive things like tax accountants and lawyers and IRS and paperwork that produce nothing tangible will be drastically eliminated..the taxes will be much more efficient. Look at how much businesses pay for tax advice and compliance...right now those than can afford the best advice can beat the system thus it is inherently unfair.
The government will always have enough income (one way or the other) but IMO a NRST makes collection of taxes fairer for all and more efficient. Those that have tons of money can spend it and pay more taxes, those that prefer to be frugal and save or buy more durable goods can alter their taxes. It will be an individual choice and not so much a government choice. Politicians will loose power and people will gain power. Social engineering by making some deductions available will be almost non-existent, the people will be able to make their choices not the government...Look athe the tax break given large SUV's for business use, which contradicts fuel econeomy...a failed product of our tax laws. If there was no tax advantage for one vehicle over another, business would go with efficiency (initial cost, fuel & operating costs etc.) making efficient long lasting products more viable.
Look at the administrative nightmare we have to levy and collect taxes, most just thrown away in inefficiency. Imagine a private organization trying to raise money with thousands of pages of regulations compared to saying hey everyone just contributes x percentage of y.
Also, income taxation isn't even where all of the Governments money comes from. Never has been, never will be in a sane world.
The same person who never looks at their check stub will throw away the receipt in the bag they carried it home in too.
23% tax inclusive = 29.87% sales tax. The (any) nst is NOT a sales tax but a tax "of the gross payment".
Your receipt:
$100.00 +
6% State sales tax= $100.00 + $6.00 = $106.00
$106.00 + 29.87% (23%) Federal sales tax = $106.00 + $31.66.
Total due for your $100.00 dollars worth of Chinese crap from Walmart:
$137.66
$137.66 minus 23% (gross payment tax)= $106.00
In the example given, your 23% sales tax is actually a 31.66% tax...37+% higher tax rate than promised. What else are they lying about?
LOL!
Imagine that, a major group of the nations tax suckers endorse a new tax law.
When the American Farm Bureau also recomends reduction or elimination of farm subsidies to lower the proposed already phoney tax rate we can really know their intentions are genuine.
Might be easier to hike, but considerably harder to hide. A sales-based tax would impact more voters than the present tax system does. Since the politicians only care about re-election, a sales-based tax would provide more direct pressure to keep the tax burden low.
Correct me if I'm wrong, but most farmers and self-employed still have to "keep the books," as a matter of good business practice. I think that computing how much income one has made in a year would come under that, but I could be wrong.
Capital gains is a tough one, I admit, and a subject that would be up for debate. I note that, while the sales tax is only point-of-purchase, there would be people pressing to tax stock purchases, as well. None of these are simpler than their advocates make out.... but they are simpler than what we have now.
Once we decide that we're going to have a government that collects taxes -- and as much as I'd like it otherwise, that's the government we're going to have for the foreseeable future -- they're going to have to find out something about us. Maybe it will be our income (present and flat income taxes). Maybe it will be our purchases (with a sales tax)(even if no one-to-one records are kept, there is a lot that can be deduced).
Personally, I'd rather let the government know how much money I'm getting, rather than what I spend it on.
And why should I have to devote hours and days to the effort of collecting, documenting, and reporting this information to them?
Well, I admit, I was lazy about balancing my checkbook -- something I gladly handed off to my wife, when I got married. Still, one would think you'd keep track of this, just so that you know how much money you have. Or, for those who are employed by others, a form providing the yearly income can be provided at the end of each year.
First of all, real property wouldn't be included. Second, this so-called issue is easy to solve and takes a trip to the court house and about 8 bucks (at least in Texas). All you have to do is create your own real estate investment company that consists of you, your wife, (or whomever), purchase the house, and "rent" it to yourself. Real Estate loans (after the property lien) are based on personal guarantees anyway, so the mortgage company isn't going to care. So you create a sole proprietorship landlord company with only one tenant: you. Big deal.
Not if they have to put stuff back because they can't afford the final bill.
With the exception of business purposes,there are no other exceptions....Real property would absolutely be included.
Not if they have to put stuff back because they can't afford the final bill.
True
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.