[n-tres-ted]

Looka here! This man's testimony is great! He even thought of some outstanding advantages of the Fair Tax Act (HR 2525) that I had not fully recognized. Such as that education expenses would be "untaxed" by being paid with pretax dollars. In other words, a person could get 100% of his/her pay on the paycheck and would have 100 cents on the dollar to pay for education, rather than after income and payroll taxes as is now the case.

See the more complete text by clicking on the URL. This and other testimony was given yesterday in Washington.

[rwfromkansas]

Great testimony. Now it is time the House Ways and Means actually gets the bill debated.

[LarryLied]

Take the chains off and Americans can compete with anyone in the world.

Think I'll pick up a Godfather's Pizza tonight.

[mhking]

Black conservative ping

If you want on (or off) of my black conservative ping list, please let me know.

[pigdog]

Great post ... thanks n-tres-ted!!

He is certainly correct on all counts.

Little Willie was "The Worst President In American History".

[Rockitz]

Imported goods would be treated the same as domestically produced goods. This means US businesses would be much less likely to locate their plants overseas.

The unions won't like this one bit. Relatively unskilled manufacturing labor in this country will then have to compete with slave labor in other countries and US businesses will be more likely to locate their plants overseas. Only low cost per unit volume/weight items will be manufactured in this country (i.e shipping and distribution costs drive the price). As it is, this is happening in the current environment and will accelerate exponentially in the proposed tax environment. While thsi proposal is globally fair and would bring labor prices back to reality it is a union buster which will never be adopted as long as unions are allowed to control our politicians.

[nightdriver]

"A single national sales tax rate on all new goods and services of approximately 24% (to be revenue-neutral) would replace the 1.7 trillion dollars of taxes on income."

Yes, but 24% SALES TAX?

Add to that all the state and local sales taxes, and we have something like 33% sales on not only all goods, but services as well. Uuuhhhmmmmmmmm!

[ATOMIC_PUNK]

THE MAN Herman Cain

[Bounceback]

"Consumer prices would decrease 20 to 30 percent by eliminating the nearly 250 billion dollars in annual compliance costs, and eliminating the taxes on corporate profits and labor (payroll taxes), which are imbedded in what we pay for goods and services. (Dr. Dale Jorgenson and other economists)."

What is more likely is that the cost of all the non-necessities will rise substantially with the added National Sales Tax, which is great only for those who do not consume.

Moreover, if certain "necessities" were not taxed, or subject to a rebate (incidently, when do the low income folk get their rebate - monthly, quarterly, annually?) lobbying efforts would begin immediately get more products and services on the "necessities" list.

And how is the zillion dollar casino industry, which has inspired federal and state and local governments with their 'added' income tax revenue, to be taxed? By the bet?

In other words, the cure-all is still subject to the tinkering that has turned the present system into what it is today.

[MarkL]

No taxes on the “poor” because basic necessities, as defined by the Department of Health and Human Services, would not be taxed by utilizing a rebate.

This is one of those things that I've never understood. Why a "rebate?" Why not just making necessities tax exempt from the get-go?

Mark

[Willie Green]

Posing as "tax reform", the NRST (HR 2525) also represents a "land grab" where business interests are favored over individuals purchasing for their own use:

• A family purchasing their own new home for $200,000 pays NRST at a tax-included 23% rate. This means that of the $200,000 paid, $154,000 goes to the seller, and the Gov't receives $46,000 in tax.

• A landlord/investor can exploit the business exemption of NRST and purchase the same new single family dwelling tax free as a rental investment for only $154,000. Tenants pay NRST on rent and Landlords act as tax collectors for the government

• The $154,000 vs. $200,000 purchase price advantage that landlord/investors enjoy over individual personal homebuyers can be expressed two ways:
  • Landlord/investors enjoy a 23% discount compared to the individual personal home buyer.

  • Individual personal home buyers must pay 29.87% more than landlord/investors.

This a significant inequity between individuals trying to buy their own new homes and landord/investors looking to buy the same single family dwelling as a rental investment. This disparity has long term implications affecting the distribution of private property. The American tradition favoring individual property rights is reversed. The NRST would discourage individual "consumption" of real property.

"... legislators cannot invent too many devices for subdividing property, only taking care to let their subdivisions go hand in hand with the natural affections of the human mind. The descent of property of every kind therefore to all the children,...

But it is not too soon to provide by every possible means that as few as possible shall be without a little portion of land. The small landholders are the most precious part of a state."

-- Thomas Jefferson to James Madison, Oct. 28, 1785 -- PROPERTY AND NATURAL RIGHT

[lewislynn]

Such as that education expenses would be "untaxed" by being paid with pretax dollars. In other words, a person could get 100% of his/her pay on the paycheck and would have 100 cents on the dollar to pay for education, rather than after income and payroll taxes as is now the case.

Uh huh, unless it's a government school. The fairtax imposes their tax on the wages, salary and benefits of "any government" employee and since those employees would get 100% of their wages like everyone else, the tax would increase the government payroll (cost of government) a HUGE 30%...Yes, your phony 23% tax increases prices 30% not the phony 23%.

[ancient_geezer]

A Taxreform bump for you all.

If you would like to be added to this ping list let me know.

John Linder in the House(HR25) & Saxby Chambliss Senate(S25), offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:

H.R.25,S.25
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.

Refer for additional information:

• http://www.fairtax.org,
• http://www.myfairtax.org/,
• http://www.salestax.org,
• http://www.geocities.com/cmcofer/ftax.html

[sandydipper]

Never happen - it's too simple.

[NewLand]

((((( THE OFFICIAL HERMAN CAIN PING LIST )))))

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Go Herman Go!

[AuH2ORepublican]

Herman Cain is THE MAN! It's a travesty that so many Georgia Republicans allowed themselves to be fooled by Johnny Isakson's well financed campaign and elected Isakson instead of Cain to the U.S. Senate. I wish Mr. Cain would run for Congress so that he has an electoral win under his belt and is a more viable presidential or VP candidate for 2008 or 2012.