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no they won't. they will pay in cash to those who only accept cash
Posted on 10/09/2007 5:27:15 AM PDT by Man50D
Ron Petrucci's Sept. 24 letter addressing Charles Firth is right on a number of points. We have been running more than an $800 billion trade deficit. That can't go on for very long. Ron says we're a debtor nation and we are.
Our manufacturing continues to move overseas to "more tax friendly" locations. We can't exist by providing each other services. Picture everyone doing their neighbor's laundry. We need to produce products to exist.
What Ron neglected to say is that the reason for that migration is our tax system. Federal taxes and associated compliance costs comprise an average of 25.9 percent of prices of our goods and services. Imported goods and services arrive at our shores essentially tax-free, because most foreign governments encourage exports by rebating their taxes at their borders. We don't do that.
When we try to sell there, they add their taxes to our prices, so our goods and services end up bearing double taxes. American companies have a raw deal both ways. That's why they have trouble competing.
There is an answer, though in the form of HR 25, The Fair Tax Act. That bill is in the House ways and means committee. It is the most thoroughly researched tax bill ever.
For the second time, a group of noted economists recently wrote a letter to Congress and the president, urging them to pass it and sign it into law.
The bill already has more cosponsors than any other tax bill in 80 years. It is a grass-roots proposal. It will pass only if enough citizens support it and tell their representatives. If passed, the current federal tax system would be replaced by a national retail sales tax applied at the final retail sale and collected by the states.
Net retail prices paid would be about the same. Revenue raised would be about the same. Collecting a sales tax is much more efficient than collecting an income tax, it provides a steady revenue flow and everyone would pay.
It needs to pass now, though, before this president leaves office, because no first-term president will entertain changing the tax system, and Social Security will run out of liquid assets at about the end of the next president's first term.
Check the proposal out at www.fairtax.org
And we don’t have that now ? There’s a huge underground economy now. Tax cheats will always be with us.
What is a “low rate” on the current income tax ? Do you consider paying 15-50% of your income to be low ? I don’t.
So in a market economy, where your team says the "Fair Tax" will "help" manufacturing jobs, you want to now discourage the purchase of goods and services via the "Fair Tax" which will imapct the production of same... Sorry, I am confused...
two onerous sales tax collections are not better than one onerous sales tax collection. DOUBLE the montly work.
Of course this assuemes the business is not currently in a service business and does not have to collect ANY sales tax.
Ah, that’s where the Ginsu comes in...
only when you’re shopping at the Salvation Army thrift store...
FYI in Cuba if a citizen consumes something they should not it is a crime. Once had an aquaintance who fled castro and had be charged with the crime of illegal consumption. He had too much food.
Perhaps we could have prebate penalties for illegal consumption. (red meat, cigars, Rush 24/7)
get rid of all the deductions and loopholes and then you can lower the rate. All sectors would be taxed the same instead of whacking retail with a big rate and leaving everything else alone. Why would anyone want to be in retail anymore unless it was underground?
Wow, you post all this without knowing any facts. Your ignorance and lack of research is astounding.
Corporate tax rates are 39% - federal - for any corporation earning over $75,000. Yes, note only three zeros there. Add state corporate taxes of 9-12% in CA and the Northeast, plus local taxes, and you are over 50% on corporate profit. Add in unemployment compensation, workers comp, and 7% FICA, plus 9% FICA/Medicare from employees, and you are paying massive taxes as an employer.
http://www.infoplease.com/ipa/A0005946.html
Almost 50% of this country pays only FICA taxes. And those are just the people who FILE taxes. Those aren’t people who don’t file at all. http://www.heartland.org/Article.cfm?artId=15281
There is a large underground economy now, and I’m sure that won’t change. However, it does mean that your local drug dealer WILL pay some income tax every time he spends money on his bling, buys a drink in a bar, and a fancy car.
Get the facts, dude - you do yourself no credit by spouting irrelevancies. Search is your friend.
Wherever did I diss success ? I just pointed out that one part of our wages is the high cost of the taxes we pay. If you have a problem with facts, then I’m sorry for you.
If it comes to Sushi, Rib Eyes and Cherry Slushies, I’m screwed...
... it turns all businesses into UNPAID tax collectors.
Businesses aren't tax collectors now? They don't collect the sales taxes that states require? They don't pay corporate taxes of any kind to the Federal Government? -- which taxes are, to the last cent, collected from their customer as a part of their prices.
Corporations DO NOT PAY TAXES -- they collect them from their customers and turn them over to the government.
Until you can understand that, it is really a waste of time trying to discuss that point with you.
So who was having factual issues....
The whole concept of fair tax disses success, that will be it’s undoing. To save taxes we DON’T spend. Right.
That will go over like a lead balloon if the FT ever gets anywhere.
Yeah, just like we now have mortgage deductions, graduated income tax rates, and every other credit/deduction on the 1040, Schedule C etc that promotes someone’s special interest or social engineering policy. And - Congress is already going to give us a credit on our TV sets as they mandate the phasing out of analog TV.
Your point ? Taxes are never fair, just like life. The only really “fair” tax is the most minimum possible like we had in the early years of this country.
Do the only thing possible - advocate for minimum taxes for all and vastly reduced government spending.
End of story.
Imagine if you can get four taxpayers to live in one appartment.
This is a $2000.00 a month pot!
Imagin if you can create phantom illegal aliens to live with you at your appartment! How about phantom appartments for rent to phantom illegal aliens!
Couple this with hillary’s 5000 dollar baby bonus and now it starts to pay to have children! (415.66 extra per month! PER CHILD! cha ching!)
This means I can sell my houses with mortgages $1415.66 higher per month for a family of three.
Isn’t free money wonderful! need more money? we do like jimmy carter! we print more!
There’s this thing called exports ... and productivity ...
Current tax compliance costs hundreds of billions of dollars, according to those who track such things. I’d like the 2200 hours of my money back that I now pay my bookkeeper and accountant.
I could buy something with that money, or invest more in my businesses.
Tax prep and compliance lowers productivity.
If you pay over 50% of your income in taxes of all types, then a large part of your income is not due to success unless you like the progressive tax system.
Under a flat tax type scheme, the “success tax” does not exist.
Do the math.
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