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
What does The fairtax does however tax property taxes mean?It means property tax payments are not exempt from the Fairtax. And, regardless of any research you have done, other than reading the Fairtax bill itself, payments for fees, services and products are what would be taxed..."gross payments" to be exact.
There are states with (consumption) sales taxes and or state income taxes in place of property taxesThere are states without property taxes? What states would those be?
While those with income from the underground economy might not pay income taxes now, those who spend in the underground economy will not pay the FairTax - its a wash. If the underground economy grows as a result of the FairTax, then its a loss.
When they buy expensive autos or boats or motorcycles or whatever they will be subject to the Federal tax on their illicit revenue. The current federal tax on income, they are not.
Maybe they'll by those demos.
To touch on this last point of yours. In Texas, there are a few lawmakers attempting to address the issue of taxes levied on property, particularly homes. The main thrust of their legislation is to do away with property taxes that put an unfair burden on the HOME.
A friend's daughter lives in Nevada, a no income tax state. He says property taxes have increased over the past few years to the extent where she is considering moving out of that state.
Taking the burden off the home, putting choice back into the peoples hands, eliminating the enforcement arm (IRS), reducing administrative / structural cost, and bringing tax simplicity to citizens lives are positives in my opinion.
What the FairTax will do is tax rents paid at 30%, while landlords are not taxed on rental income or the cost of maintenance. If homeowners are not taxed on the rental value of their homes, then renters bear an unfair burden. If property taxes are eliminated in favor of increased sales taxes, I would expect one mighty big backlash.
So far, Ive heard all the critical points of a fair tax coming from you and NO solutions.
The subject of the discussion is the FairTax, specificly.
Are you advocating that we keep the current tax code? Could you help me understand your point?
There is nothing positive to be gained from switching methods of taxation, unless it can be proved that the new system is BETTER. A transition from an income tax to a sales tax has costs. It will be disruptive. While some, like one FairTax advocate on this thread who sells investments, might expect to gain, the losers would be the retail industry who would expect to see losses while being burdened with tax collection. Another industry loser would be new home construction. The prospect of paying an additional 30% on materials and labor would impact remodeling as well. Most likely, people would decide to make due rather than invest in home improvement.
As we know, when business slows down in one sector, it has an effect on down the line.
If your not there, well then, your just not there. Not only would corporate America embrace change to the tax code, most Americans are fed-up.
Happy trails to ya.
It’s easy to google....do I have to do my homework and yours as well?
Google.com will take you where you need.
So you saying there are states with no property taxes or property taxes have been replaced with sales taxes in some states is a lie then...typical Fairtaxer BS.
So, you saying there are states with no property taxes, or property taxes have been replaced with sales taxes in some states, is a lie then...typical Fairtaxer BS.
do I have to do my homework and yours as well?The dog must have eaten your homework.
That is NOT what I’m saying. The proportion of property tax is much lower than say...Texas.
By the way, I am not a proponent for the Fair Tax. I am a proponent for any plan that is Fairer than the present code.
So if your attempting to refute me on the basis of “I’m spreading typical FT B.S.-your way off base.
The current system is burdensome / complicated, expensive to administer, unfair to the middle class, does a poor job promoting investment in America and last but not least...has an enforcement arm that in my opinion is unconstitutional.
Gotta better plan....lets here it.
I’ve seen a few plans. Most of which have points I like and dislike.
The current tax code consist of thousands of pages of legal jargon which most find difficult to make sense of it all.
So.....I guess your not one of the millions who will be hit by the AMT? Or have the IRS ape on your back.
By the way...I do have a lab that loves homework :)
Just Say No to Ignorance http://Fairtax.org
Yes Way
Hell Yes
Hell Yes -Ending secret entitlement program of embedded tax to the government.
Hell Yes - Free Freedom from Social Security
Yes - Retirement Plans are put on Steroids
Retirees love the prepate and the fact they have already made all the major purchase in their lives and can now live tax free for the rest of their lives and pass their wealth on to the next generation.
Fairtax covers new snake oil
Only a complete idiot believes the current system is better than Fairtax.
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