Posted on 03/08/2005 9:20:44 AM PST by n-tres-ted
Our tax code is a mess for a reason. Special interests pay for special favors. And with 17,000 pages and counting, there's plenty of places for our politicians to hide the kickbacks. Meanwhile, all the exemptions, deductions, exceptions and special provisions reduce the tax base, which means higher tax rates and smaller incentives for individuals and companies to produce income. And whether the tax breaks are set in fine print or spelled out in bold type, they generally favor the rich, making our tax system less progressive than is generally believed.
No tax system is perfect, but ours is so awful that fundamental reform is the only option. Fundamental reform is not just a necessity; it's also an opportunity to stop taxing income and start taxing consumption. My colleagues and I have been studying income and consumption taxation via computer simulations for some time now. We've found that switching from taxing wage and capital income to taxing consumption can significantly improve economic efficiency and growth. What's more, it can make our tax system much more progressive and generationally equitable.
(Excerpt) Read more at online.wsj.com ...
This is where you are wrong. An NRST will remove "choice" from the consumer because you will have less money, under an NRST, then you do now. Even though you "get to keep all of your income", it will not equalize. You will have less buying power under an NRST, than you do now.
Why would it? Because if I have $100,000, I can buy a $100,000 untaxed existing home, or I can buy a taxed new home and need an extra $23,000 in tax (or alternatively, I can buy a lot less house and pay the tax and house out of the $100,000).
if you don't think that every credit card or debit card purchase is tracked, then you know little about marketing. By allowing the camles' nose of th goverment into the tent of your personal purchase decisions, then you allow their ability to monitor those purchases. and if you don't buy enough to pay enough taxes to support thre government, the government will raise the tax rate for the rest of us.
It's a National Retail Sales Tax.
Commmie alert? you callin' me a commie? why? what is socialistic about objhecting to a plan whereby the government taxes most people away from the ability to enjoy new cars - but reserves it only for the rich?
firstly, you are not talking about any normal price increase, but 22 - 30 percent depending upon whom you beleive. an if all the major car mfgrs raised their prices that much what do you think will happen to the auto industry? and that is good for the country how?
Second if you think the government is going to let you buy a used car without paying that much tax for any length of time before they close that loophole, than I have a bridge in brooklyn that might interest you.
"American companies will be even worse off than they are now in foreign trade with an NRST. Many will just leave the US and go to countries that want the revenue. And there are plenty willing to welcome them. How's your Spanish or Hindu. Or maybe your kid's or your grandkids. Think about it."
Watch out, you are getting as hysterical and irrational as some of the other guardians of the status quo who frequent FR.
"A recent survey was done, in Europe and Japan, of the major corporations and I was astounded at the results. They were asked, 'If the US abolished its income tax and went to a sales tax, would that have any impact on your decisions?' Eighty percent of the corporations said they would build their factories in the United States of America. Twenty percent said they would move their international headquarters to the United States of America."
(Former) Chairman of the House Ways and Means Committee,
Rep. Bill Archer (R-TX)
Speaking in his Congressional District in Houston, TX - August 12, 1996
Quite a contrast between what the companies themselves say they would do and your forecast, wouldn't you say?
Consider a $10,000 purchase, taxed at 23%. The $30,000 earner pays 7.6% of their income in sales tax. The $100,000 earner pays 2.3%. Yell BS all you want, the numbers don't lie.
Wrong again Willie. You simply must show that someone is alive, and they get the check. Willie Green and Bill Gates get the exact same amount which "pre-funds" sales taxes up to the poverty level. Your kid and Bill's kid get the exact same amount. It does not matter how much your income is.
Correct
please. governments don't create such loopholes.
It is not a loophole, but a foundation principle, used goods are not taxed (taxes were already paid once on their production and purchase, taxes are to be paid once and only once..no cascading taxes)
besides, aren't you really saying that only the rich should be able to buy new cars and that the rest of us are opnly good enough for their cast-offs?
No not at all when currently embedded taxes are eliminated prices with tax are expected to be similar...
The whole proposal is well thought out and while not perfect IMO is much fairer than what we have now...it will also stimulate the economy and IMO cause more of the current underground economy to have to pay taxes...broadening the base of taxpayers and eliminating lobbyist loopholes...
Yep, just like I said: you no longer have to wait until you're 65 to get your monthly SS check.
The NRST sucks everybody into the welfare system as soon as they're born!!!!
"firstly, you are not talking about any normal price increase, but 22 - 30 percent depending upon whom you beleive. an if all the major car mfgrs raised their prices that much what do you think will happen to the auto industry? and that is good for the country how?"
You don't have any idea how the proposal would work. I would suggest suspending judgment until you become more informed.
Wooohooo!!!! EVERYBODY collects goobermint welfare checks!!!
No wonder you love this system!!!
I don't know so much about tracked. Recorded might be a better way of putting it. The last I remember there is still no way to track cash purchases.
if you don't buy enough to pay enough taxes to support thre government, the government will raise the tax rate for the rest of us.
If we all don't buy enough it will be a red flag to the government that we are taxed too high. They will then have to cut spending to get us to shop. I think it's a nice check and balance.
Maybe not a commie. How about class warrior?
we agree (?) thanx!
Even the MagLev corporate lobbyists!
So production and wholesale will have exemptions, but the retailer will collect the tax? What's in it for the retailer, large or small, to collect the tax, besides jail if they don't. Will the retailer be able to deduct the cost of accounting? Furthermore, what about those who are starting a new business in their garage, how do they qualify for exemptions from paying the NRST for their startup supplies, machinery, etc.?
You just don't get that VAT's and NRST's are to jobs in this country, what Arabs are to buildings in New York.
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