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
Fair Tax ping!
Aw geez! not this $#!^ again!
A M E N ! ! !
The sooner the better!
The article was pretty good until they had to throw that whopper in.
Then get to work and pass it
are you paid to keep pushing this swill?
anybody who thinks that this is going to look anything like the proposal by the time it gets throuigh is going to be surprised when the net gain is zero.
you’re creating a frankenstein’s monster by volunteering another pocket for the politicians to pick.
and if you think that congress is going to reliminate the IRS, I have a bridge to sell you cheap.
Good luck!
You think these bozo’s in Washington are gonna give up a good thing?
Not just NO!
NO WAY!
and H*LL NO!
No to the creation of a national sales tax!
NO to the creation of a NEW ENTITLEMENT PROGRAM with the absurd prebate!
NO to the creation of new and MORE intrusive government paperwork in private business!
NO to the COMPLETE DESTRUCTION OF RETIREMENT PLANNING! This would be a NEW TAX on seniors who have tax exempt income!
The Fair Tax is a scam and snake oil.
The current system is bad but passing this abomination is far far far worse.
Get a grip - seniors pay taxes now.
Capital gains taxes, taxes on pensions, taxes on SS income.
the reason fairtax scammers are pushing to do this fast is because the truth about this insanity is commeing out.
Reading the Fair Sales Tax scam exposes all the lies told by the supporters.
This is just a path to new entitlements and does NOTHING for the parade of lobbyists who will petition for loopholes, same as today.
The same methods used to avoid the old luxury tax SHALL be used to avoid this BS. Straw sales, offshore corporations, and manipulation will be done because it has been done.
The same methods that avoid sales taxes on private boats will be applied to this inanity.
How is it a scam? Though I guess if you live in the lap of luxury and don't pay income taxes thing are going to get somewhat more expensive.
I agree. I seem to recall another tax experiment a few years ago called the luxury tax. This was a pseudo sales tax upon items only the super rich could afford, like yachts, etc..
Seems the super rich either delayed purchasing their yachts, or bought them overseas and kept them there, and weren;t inconvenienced at all.
the entire domestic boat building industry disappeared though - and the only people hurt were those employed therein.
motivations aside, when you price things out of people’s reach, demand dries up, and people find alternatives. then whole industries die, thousands out of work, huge demands upon the social safety net that require more taxes, and you have a vicious cycle right out of “Atlas Shrugged” almost.
this proposal would artificially raise prices on manufactured goods, consumers might take home a bit more money, unless (as is likely) the government keeps the income tax, but the huge spoike in prices of goods will more than offset.
a little more thinking and a little less dreaming and you’ll find that reality doesn’t always move in desired or even predictable paths. this proposal is somebody’s pipe dream and I hope they feel good about it as it saps the economy into a depression that would make the last one seem like a cake walk.
you are incorrect for those who have planned.
Some of a retirement portfolio MIGHT be taxed but under the fair sales tax scam ALL will be taxed.
Consider that ROTH IRA’s which are to be no tax on the money comming out WILL then be taxed TWICE with the money in and out.
Don’t forget the class envy game that will happen with prebate games. Democrats are guaranteed to say “rich people” (which they define as a family earnign more than 80k) should not get the prebate at all. [for the children]
Federal taxes and associated compliance costs comprise an average of 25.9 percent of prices of our goods and services.Not to mention that whopper
Thanks for the ping. The movement is gathering support from all ends of the political spectrum. Young people are definitely onboard.
The naysayers are losing their credibility by insisting people hold onto the Income tax monstrosity that presently exists.
The only significant opposition to HR 25 is in the more than half of the 53,000 lobbyists that are paid to game the present tax code inside the beltway.
And there is a growing backlash against K-Street within powerful insider circles.
Democrats are starting to get heat from their constituents to support H.R. 25 / S. 1025. They have begun to join the movement.
Horsepoop.
I have already called my representatives and senators on this abomination.
There is no way a prebate entitlement program is going to pass. It is essentially minimum wage without the need for working. If you don’t think so you might as well say social security is only a retirement supplement.
interesting to note c-span just reported Senator Rangle is putting out his tax package today and this Fair SCAM Tax propaganda pops up.
The fact that YOU cannot get your mind wrapped around something does not make it untrue.
nobody I know of is insisting on keeping the IRS. we don’t like it any better than you do. we just know that your scheme is worse, adn has the potential to cause great havoc.
why do you always go polar by treating people who disagree with your agenda as in favor of the IRS?
Why do you paint your opposition as being in bed with the IRS and as being filthy rich, or having a vested interest in the current system?
Sounds like the Clinton machine calling Paula Jones “Trailer park trash”.
why? is it your way or the highway?
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