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To: Taxman
There is no distinction between the Flat Income Tax (FIT) and the National Retail Sales Tax (NRST) in respect of taxpayer pressure to keep the rate low.
Economically (to an economist, that is), the FIT and the NRST are equivalents.

I do not believe it is anybody's business how much money I or anyone else makes, particulary some government pogue in the IRS!
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TM, Let's say that a person makes 100 million dollars with investment income only. Under the NRST, that person would pay taxes only on the things they need to buy. As mentioned in the article, if the object bought was a "trust" item, not even then. So, say that person spends $10 million just to get by {they already have most essentials no doubt}, at 21% they would pay $2,100,000 to the feds. If, with no deductions and/or exemptions, at 10% under the FIT, they would pay $10 million.

If a person makes $100,000, and spent $60,000 they would pay NRST $12,600, and FIT $10,000.

If a person made $10,000, and spent $10,000 plus their "rebate", they would pay NRST $2,100+, and FIT $1,000.

Now, tell me again how the incentive to keep the tax rate low is the same throughout income levels.
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Godgov WILL KNOW everybody's income and expenditures with either system. And, how do you figure that the "black market would shrink under the NRST."? Why/how will godgov know of all the things one buys and from whom? The only records will be those of godgov approved and licensed producers and vendors. The income tax in the former{?} U.S.S.R. has shown to be a better revenue generator eliminating some of the black market most recently.

Nah, there is NO doubt that for "up and comers", the FIT is MUCH better than the NRST. The people with the time to pay attention, and the wherewithal to most affect tax lawmakers and tax laws would have MUCH more incentive to keep the single rate as low as possible. Peace and love, George.

99 posted on 04/17/2003 6:42:23 AM PDT by George Frm Br00klyn Park (FREEDOM!!!!!!!!!)
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To: George Frm Br00klyn Park

Godgov WILL KNOW everybody's income and expenditures with either system.

With the NRST no person is required to report their income to the government. With the flat income tax every person is required to report their income to the government. I expect from here on forward that you will not make the the same error.

130 posted on 04/17/2003 10:08:21 AM PDT by Zon
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