Posing as "tax reform", the NRST (HR 2525) also represents a "land grab" where business interests are favored over individuals purchasing for their own use:
Posing?
H.R.2525
SPONSOR: Rep Linder, John (introduced 07/17/2001)
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.
Refer: http://www.fairtax.org & http://www.salestax.org
Sure looks like tax reform to me.
Willy, how many years you going to continue with the same wornout irrational diatribe?
You continually throw it out inspite of the fact it has been totally refuted everytime you have posted it to wit with attribution out of respect of its dominant user:
Homebuilders Will Reduce Costs and Increase Profits
The Demand For New Homes Will Increase
Interest Rates Will Drop
Homeownership Under the FairTax Will Be More Affordable
Homebuilders' Compliance Costs will be lower:
1 Compliance Costs of Alternative Tax Systems II, Arthur P. Hall, Ph.D., Senior Economist, The Tax Foundation, Special Brief, House Ways & Means Committee Testimony, March 1996. 2 The Economic Impact of Taxing Consumption, Dale W. Jorgenson, Ph.D., Harvard University, Testimony before the Ways and Means Committee, March 27, 1996. 3 Ibid. The Economic Impact of Replacing Federal Income Taxes with a Sales Tax, Laurence J. Kotlikoff, April 15, 1993, Cato Institute Policy Analysis. 4 Looking Back to Move Forward: What Tax Policy Costs Americans and the Economy, Gary Robbins, Aldona Robbins, Policy Report No. 127, September 1994, Taxation Analysis, The Institute for Policy Innovation. 5 Effect of a Consumption Tax on the Rate of Interest, Dr. Martin Feldstein, Ph.D., Working Paper 5397, December 1995. The Flat Tax, 2nd Edition 1995, Robert E. Hall and Alvin Rabushka, The Hoover Institution Press. Hardly a disadvantage for homeowners. |
- Landlord/investors enjoy a 23% discount compared to the individual personal home buyer.
- Individual personal home buyers must pay 29.87% more than landlord/investors.
This a significant inequity between individuals trying to buy their own new homes and landord/investors looking to buy the same single family dwelling as a rental investment.
ROTFLM(_|_)O!
Still playing rich man against poor man aren't you Willy.
You do know of course, that investors are home buyers and renters too, don't you?
Why don't you mention:
These factors more than overcomes any imagined advantage of investor over the homebuyer so that all homebuyers can become an investors too.
But then good socialists never consider becoming investors themselves now do they W.G.
Now, lets take a look at your specifics and see how they hold up:
A typical family purchasing their own new house today has 25% or more of their gross income extracted by the Federal government before they even think about buying a new or even an older house. That is not even counting the tax costs and costs of compliance placed on businesses of an additional 20 to 30% and embedded in the price of the new house.
Of course that landlord/investor also pays the same tax on the house he lives in or rents before he can ever become an "investor/landlord" in the first place. Or do you figure such folks live in NY allies and sleep on park benches.
Additionally, a buyer of an older home, is not charged the NRST, which is the case of most first time buyers of homes.
Actually not, as the Landlord/invester pays the 23% tax on the home he lives in whether rented or purchased, the same manner as any other individual.
Again untrue, the landlord/investor pays the same tax on the home he rents or buys new for his personal use. All individuals are treated the same under the NRST. Infact, because the individual receives the full benefit and control of his gross income, as opposed to merely after tax income under the current system. That plus the NRST prebate paid to ALL households provides an enhanced opportunity for everyone to become investors.
Under the current Income/Payroll tax system, the total contribution of the federal tax system(including taxes in gross wage/salaries) to the price of retail consumption goods and services is 36% for taxes alone. Including cost of compliance at around $600billion/year, increases that percentage to about a 47% total burden with respect to current family consumption expenditure caused by the federal tax system as it exists today.
I'll be happy to pay 23% of the total payment for new goods and services, or as you would put it (30% added on) to the tax free price any day. Considering that I have available my full gross pay from which to accrue tax free growth of my savings and investments.
Compared to what we are hit with now:
We must . . . End Tax Slavery Now; Nov '97
by Jarret B. Wollstein
HOW MUCH DO YOU REALLY PAY?
According to the Tax Foundation, in 1994 the average American paid 22.4% of his or her income in federal taxes, plus 11.8% in state and local taxes - 34.2% total.
But that's just the beginning! Dr. James Payne of the University of California found that in addition to direct taxes we also pay huge, hidden taxes including:
- Compliance costs - record keeping, monies spent on tax planning, computers and software purchased to fulfill IRS requirements, etc.
- Enforcement costs - IRS audits, field investigations, service center corrections, criminal investigations, litigation, and forced collections.
- Emotional, moral and cultural costs - families forced onto welfare, time and creative energy lost figuring out how to avoid taxes, etc.
For every $1 we pay in direct taxes, we spend an additional $0.65 in compliance costs. And even that figure doesn't include the cost of import duties, license fees and other government regulations. For a typical U.S. family, the real cost of taxes and regulations is at least:
Federal taxes 22.4% of income
State & local taxes 11.8%
Compliance costs 22.2%
Regulatory costs 12.7%70.1% of your income is now consumed by government
I thought you were pounding your chest about presenting facts..."residential land is not taxed" is a blatant lie and the rest of your garble is conjecture at best, not fact.
Let's play your little game.
For every $1 we pay in direct taxes, we spend an additional $0.65 in compliance costs. And even that figure doesn't include the cost of import duties, license fees and other government regulations. For a typical U.S. family, the real cost of taxes and regulations is at least:
Federal taxes.....22.4% of income
State & local taxes....11.8%
Compliance costs.....22.2%....WAIT! Which is it 65% or 22.2%?
Regulatory costs.....12.7%
70.1% of your income is now consumed by government,
Your total is actually 69.1%..another sign of pi$$ poor math or just a little fudge? Aside from that, how does your "revenue neutral" tax plan pay for that AND the elimination of taxes passed from corporations directly to the consumer?....
Here's how:
the cost of import duties, license fees and other government regulations. ....would all increase by 30% under your tax as they are all subject to your sales tax
Fed. sales tax...23% (of the gross payment)
State and local ...11.8% + 30%=15.34% (part of the "gross payment", it's subject to your sales "gross payment" tax).
Compliance costs...22.2% + 30%=28.86% (your "compliance" is nothing more than bookkeeping "service"/ cost)
Regulatory costs...12.7% + 30%=16.51%(regulatory "fees"/ costs are subject to your tax AND they're included in "the gross payment")
Your "sales tax" would cost 83.71% of our income. "And even that figure doesn't include the 30% inflated cost of import duties, license fees and other government regulations."
Mr. FROST. Mr. Speaker, I yield myself 30 seconds.Mr. Speaker, the previous speaker was asking about simplicity and how do we understand all of this. Let me read a memo from the Joint Committee on Taxation . This ought to be simple enough for the gentleman to understand.
The memorandum is in response to their request for an estimate of the budget neutral tax rate for H.R. 2525. That is the bill of the gentleman from Georgia (Mr. LINDER), a bill to replace the current U.S. corporate and individual income, estate and gift and Federal income contributions act, payroll taxes, with a flat tax on retail sales of all goods and services.
Then on the second page it has a little chart here, neutral over 5 years, 59.5 percent. That is what they want to do, neutral over 5 years, national sales tax 59.5 percent. I believe the American people can understand that.