Posted on 02/13/2005 10:41:05 AM PST by nsmart
The FairTax is the non-partisan national sales tax proposal that would replace all federal income taxes. These include personal, estate, gift, self-employment, alternative minimum, capital gains, FICA, and corporate and death taxes.
(Excerpt) Read more at WWW.FAIRTAX.ORG ...
Thoreau went to Walden Pond to protest taxes. Today a SWAT team would be sent in, his cabin burned, and he would shoot himself in the back. The papers would applaud the death of the "White Separatist".
I hate the federal boot on my individual neck. If HR25 passes, taxes again become voluntary. States collect them. If I get mad, I can purchase only used goods.
Another way to look at the rate is percent of spending absorbed by the tax. That rate is 23%... Buy an item for $77 and there's 23 tax ... 23/100 = 23%... this is how income tax is figured - I use this rate to compare to today's system...
Hope that helps
Taking out the same amount of tax will not have a dramatic impact on prices.
Removing the tax system collecting those income and payroll taxes from the backs of business removes the overhead costs associated with those businesses as well. That provides substantial potential for cost savings and reduction of prices out of competition for the consumer/investor's dollar.
I hate the over the top phoney claims the Fair Tax people have been making for years. Their analysis makes global warming scientist look honest.
Strange I could make a rather similar statement about those that deliberately obscure how the NRST actually impacts business overhead costs by reducing them not only by the amount of tax but the overhead associated with tax avoidence & planning, accounting and reporting, as well as the costs that government imposes on a business in audits, litigation & legal fees when the business person's crystal ball is as cloudy as the IRS and the IRS chooses to make an example of them, not to mention the fines, and penalties assessed when the IRS' tax court takes its final cut out of the hide of the hapless victim.
And that does not even begin to account for the loss of sales revenue from lowered demand for products due to higher pricing required as a consequence of the the above.
Price going down 30-40% the first year is purs bullcrap. You would have to save some 3 Trillion dollars for that to happen. It is pure quackery at its finest.
Imagine a phi beta kappa who graduates at the top of his class. Imagine the possibilities.. he could start a business that employs 200 people, or become a scientist who discovers a renewable energy source or a doctor who cures some dread disease...
but instead, he becomes a tax attorney.. and produces...
NOTHING.. what a sad loss of human capital!
A tax must be broad to be fair. We know Reagan gave us a broad tax and the economy flourished.. but what happened after should show us just how ill conceived a flat tax idea is. It won't stay flat and as long as we keep records and the fed taxes us individually, we are not free.
The fair tax sends everyone a pre-bate up to the cost of living taxes each month.
Who is saying that?
I would love to see a tax system like this pass. I own a small home based business and pay so much tax I can hardly stay in business. I pay cash for everything (used) because I never know what the next 6 months earnings might be so I have to keep my dept low. I'm tired of paying a higher % of tax than folks like John Kerry while he travels around in his jet I'm driving a 10 yr old car and working 10 hour days.
Actually I wish you could get your numbers straight. First they say $300 billion, which is already on the high side, then they go to this ridiculous 20% number, which is a magnitude higher than the 300 billion number. On top of that you won't even be saving that 300 billion because there will be similar compliance costs with the sales tax regardless of what the nutty professors say. The NRST/Fari Tax hype is based mostly on fraudlant analysis.
The last time I checked we already have a free market and market forces keeping our prices low. This is really getting stupid.
My $300 billion is cost of compliance.. not income tax. Its the H&R Blocks and the Corp tax attorneys.. trying NOT to pay taxes. Its the decisions we make to avoid taxes, too.
Oh.. well I guess I'll go with PhDs and LLMs in taxation over an internet message from someone who... doesn't even HAVE an analysis....
If you would like to put forth an analysis, then you could make some headway... but to simply call experts wrong because you... well, why do you think they're wrong?! Do you HAVE anything indicating an error - or just your li'l ole opinion?
I gave you my anaylsis. You suck 2.5 Trillion out of the economy, it will have the same net effect on prices no matter what your method of suxation is. Fair tax people create lower prices out of thin air. It is all phoney,
Right - always... and if the entire economy could strip out 25% of it's operating costs, prices would adjust to this new level due to the very same competition that keeps prices low - you know the system you recently checked...
But the nutty professor is saying prices will drop 20-30%.
Again, the Fair Tax organization along with economists and economic departments of universities have done analysis. Where is your analysis?
"Our system freed the individual genius of man. We allocate resources not by goverment decision but by the millions of decisions customers make when they go into the market place. If something seems too high-priced, we buy something else. So resources are steered toward those things people want most at the price they are willing to pay." Reagan
No they don't. Prices will be the SAME after the fair tax... who told you after tax prices would be lower?
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