Stealth IRS changes mean millions of new tax forms

CNNMoney.com ^ | 05/21/2010 | Neil deMause

[Man50D]

NO FAIR TAX! FLAT TAX ONLY!

The Fair Tax is a flat tax but on consumption instead of productivity. Our current income tax code began as a flat income tax when the 16th Amendment was enacted in 1913. A 1% tax was imposed on the first $20,000 of income and 7% on income over $500,000. Less than 1% of the population earned more than $500,000 of income in 1913 making it essentially a flat income tax. A flat income tax will also keep the IRS in existence along with its court system that presumes a person guilty until proven innocent. All that goes away with The Fair Tax.

[cvq3842]

Yet another reason why wallets, purses, and business investment accounts are snapping shut all across America.

[Man50D]

I know the arguments for it, but I’m against the “Fair Tax” for the simple reason that politicians would use it to hide all kinds of taxes, until you’re paying more for tax than you pay for the actual product.

The Fair Tax will not have multiple taxes! It is not a VAT! It will impose only one rate at the point of sale. How can the tax be hidden when the rate will be itemized on the receipt?

I’d like to see a flat tax—one rate across the board, with a few simple deductions, so that people can figure out their own taxes and see exactly how much they fork over.

Read post #21.

[Broker]

Has Sharia Law (Mu’amlat) been written into this new Finance Bill?

[Grams A]

I see an increase in barter transactions in the nation’s future.”

Met a lady on a flight recently who was returning from a huge convention in NOLA of just such a group which is national and quite well organized. Calls to memory a statement by Angle in Nevada re trading a chicken in order to pay for health care by your doctor. Reid and the Democrats laughed at the mere idea of this but barterers are becoming a force to be dealt with and one of the many solutions to the regs forced on us by the government.

[BubbaJunebug]

Here is the hitch...The uproar will be..”All that paperwork” to fill out...and congress already has the solution...replace the 1099K with the VAT tax..the 1099K is just the decoy

[griswold3]

As the owner of a small trucking company, I cannot imagine all the businesses across the country I will have to send 1099’s to, not to mention the W9’s I’ll have to keep on file.
If my deductions are no longer allowed with merely a canceled check or receipt and no 1099, my taxes are going to increase significantly.
Before trucking deregulation, renegades were rampant. Do not underestimate American enterprise.

[PugetSoundSoldier]

Once you have businesses used to reporting every single transaction amongst themselves, it’s quite simple to say “now send us XX% as a VAT tax”.

This is simply paving the way for a VAT - business-to-business taxation that the consumer will never see, other than increased costs of product.

[Jack Hydrazine]

A fair tax is a VAT tax. How do you assume the IRS goes away with a fair tax? I hate that word ‘fair’ because the Leftists have so mis-used it.

How do you know that if a fair tax isn’t enacted that it won’t be changed like income tax was?

[tacticalogic]

Semi sarcastic response: Close down your small business due to the ever increasing regulatory and tax burdens and go on the public dole. All off these requirements add burden after burden until the camel's back finally breaks.

Co-opted by Cloward-Priven.

[Lockbox]

5 companies lose a customer

Consolidation of suppliers will be one result.

[Gorzaloon]

Please stop the fair tax stuff. We’d all love it, but it’s not going to happen. There are embedded industries that count on the Tax Code’s chaos. Washington need a good dose of Worm Medicine first.

[Man50D]

A fair tax is a VAT tax.

Wrong. The Fair Tax imposes the tax only at the point of sale.

How do you assume the IRS goes away with a fair tax?

I don't assume anything. It will defund the IRS. Both facts you would know if you read the Fair Tax Act because they are in the bill.

How do you know that if a fair tax isn’t enacted that it won’t be changed like income tax was?

How would you charge various rates based on a person's earnings since The Fair Tax is not based on income? Regardless of that point, if Congress were to raise the rate too high they would be slitting their own financial throat since people will respond by lessening their consumption. Less consumption translates into less tax collected by the treasury. Congress can only maximize the amount collected by keeping the rate within moderate bounds.

[Buckeye McFrog]

Obama’s solution to the unemployment problem (since the IRS will have to hire at least 200,000 people to keep up with this paperwork)

[EBH]

Consolidation of suppliers will be one result.

Easier to control businesses once every thing is consolidated. Less competition too.

[Man50D]

Please stop the fair tax stuff. We’d all love it, but it’s not going to happen.

The same was said about the women's right to vote and yet somehow supporters persistence resulted in the 19th Amendment. If you love it so much then why don't you get involved to pass it or are you going to wait until there is some critical mass and then jump on the bandwagon? The Fair Tax grassroots movement is growing. Rest assured I will not stop.

[Sequoyah101]

“These folks are doing their paperwork in the evenings and on the weekends already,” he says. “This certainly adds to the burden substantially.”

And all the while we work our butts off to pay the SOBs in government more than we can make ourselves. They are not at risk at all and stand there with their damn hands out ready to take the earnings we generate by putting our dollars and health at risk.

Just how far do things have to go to reach a tipping point? When do we reach enough and run them out of town on a rail? For example, the supt of schools in Helena, Mt. Were I a parent at the meeting where he is mouthing off about what he thinks a kindergartner should know about sex I don’t think I could have been stopped from strangling the pin headed bastard. There were more than 400 parents there who demonstrated inhuman restraint.

People who wield power should remember that the laws of human decency will only protect them for so long.

[Gordon Pym]

A flat income tax will also keep the IRS in existence along with its court system that presumes a person guilty until proven innocent. All that goes away with The Fair Tax.

Unless the 16th amendment is repealed the IRS will remain and any alternative tax structure will be imposed in addition to the income tax.

Not to mention the gnashing of teeth that will result over "destroying all of those jobs" at IRS

[Clara Lou]

Dumb? Or an insidious attempt to destroy small business?

[Lockbox]

There is nothing that is going to go undocumented.

This is going to be a major problem, reconsolidaing all those 1099s. What happens to a company when the 1099s returned show dollars greater then the company's revenue? How will a company figure out who filed incorrect 1099s? The 1099s covered by the company's internal credit will be easy to match up, but credit cards and cash sales are going to be a nightmare. This new law will increase the cost of doing business which will be passed along to the consumer.

I think we should have a Truth in Taxing Law. All purchases should break out on separate lines each and every tax on the supplier of the goods. That would now include the new Obamacare Tax. The purchaser could see the true cost of all the taxes paid. Like my phone service bill, where the taxes and other required government fees exceed the cost of the basic phone service.