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Inching Away From Income Tax
Washington Post ^
| 10/31/02
| Jonathan Weisman
Posted on 10/31/2002 9:02:13 AM PST by Tumbleweed_Connection
In the heart of the Treasury Department, their work deeply under wraps, tax-policy experts are hatching policy options for what could be the Bush economic team's first big idea: shifting the U.S. tax system away from taxing income, toward taxing consumption.
But taking what has long been an academic ideal and translating it into real-world tax policy would take a dramatic commitment of presidential leadership, a long education and political campaign, and a bipartisan convergence of political interests, tax-policy experts say. Few of them are holding their breath.
"It's true that you can write down a simpler tax system on paper than the one we have," said William G. Gale, a tax expert at the Brookings Institution and a critic of consumption-tax proposals. "But it's not necessarily true that you could get that tax system through the legislative system, or ensure it would stay that way once you did."
Officially, a year-long tax policy project at Treasury will merely present President Bush with tax-reform options, probably early next year. But economists and tax lobbyists close to the effort believe that Treasury Secretary Paul H. O'Neill is serious about elevating tax reform on Washington's agenda. If Congress is not prepared to act yet, at least the issue could underpin Bush's reelection campaign, they say...
(Excerpt) Read more at washingtonpost.com ...
TOPICS: Business/Economy; Politics/Elections
KEYWORDS: consumption; taxreform
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To: Tumbleweed_Connection
IN 5 DAYS, THEY'LL BE VOTING DEMOCRAT
WHAT ARE YOU DOING TODAY TO HELP TAKE BACK THE SENATE?
TakeBackCongress.org
A resource for conservatives who want a Republican majority in the Senate
To: Tumbleweed_Connection
The income tax makes all American products more expensive, while the price of foreign products is unaffected. Switching to across the board tariffs would raise the cost of foreign goods and aid the domestic economy.
3
posted on
10/31/2002 9:07:06 AM PST
by
per loin
To: Tumbleweed_Connection
Ok guys, we need a catchy name for the new tax. Let's get those proposals on the table. I'd recommend any of the following:
The fair tax
The equal tax
The universal tax
The treat every one the same tax
Others?
To: taxcontrol
How about "Screw the rich tax"? Even if the new tax system is more fair people here(MN) won't vote for it unless it hurts the wealthy\prosperous\hardworking\business.
5
posted on
10/31/2002 9:22:40 AM PST
by
Sinner6
To: per loin
Any for of tax is going to make products more expensive. But anything that doesn't give uncle sam his cut before I even see my paycheck is an improvement.
6
posted on
10/31/2002 9:23:47 AM PST
by
discostu
To: discostu
Any for of tax is going to make products more expensiveYes, but some forms give an advantage to foreign manufacturers over American ones. Other forms, such as tariffs, the opposite.
7
posted on
10/31/2002 9:27:21 AM PST
by
per loin
To: taxcontrol
How about 'sales tax'?
To: taxcontrol
smart tax?
To: Tumbleweed_Connection
Since the Treasury Dept can't pass Tax Law, this is just busy work and fodder for the press. Pure folly!!! Blackbird.
To: taxcontrol
The best plan would be the "untax". :o)
Actually this is an interesting article. I hope they do make a strong push for tax reform. From an economic efficiency standpoint, the best tax would be a national sales tax. However, the lack of the progressivity is just going to give an issue to the Dems to beat the crap out of us.
There are several proposals for a "progressive consumption tax" (google those words and you'll come up with a bunch of articles on the subject) that will give us tax system that Dems might sign on for because it mantains the progressivity of the system (i.e. the rich pay more than their fair share) and yet will give us most of the economic benefits of a national sales tax.
Not ideal, but as Pay Moynihan once said big reforms pass the Senate 70-30 or not at all. Unless we can get some liberals support a tax reform plan, why waste the time and just give the class warriors a free campaign ad (exhibit A - Newt Gingrich's efforts to reform Medicare were for naught and cost us seats in the House because he didn't line up Democratic support for his proposals. He would have been better off shelving the plans).
To: per loin
That's what tariffs are really all about. Any form of taxation will hit locally produced good harder than foreign because more of the process is subject to local taxation. Tariffs are a method of evening that out. But you want to be careful with tariffs, getting punitive with them causes bad feelings that can accelerate into a full on trade war. Trade wars aren't good and when your country produces more than anybody else and consumes more than anybody else you have more to lose than anybody else.
12
posted on
10/31/2002 9:36:46 AM PST
by
discostu
To: Tumbleweed_Connection
How about the "Optional Tax". A comsumption tax is a voluntary tax. However, I believe that items such as healthy food and medicine should not be taxed.
13
posted on
10/31/2002 9:36:49 AM PST
by
xrp
To: Bob Buchholz
A sales tax with exempted food, basic clothing, utility services, and higher tarriff would be just fine with me..
14
posted on
10/31/2002 9:38:21 AM PST
by
Will
To: xrp
Define "healthy" and "medicine"...
15
posted on
10/31/2002 9:43:49 AM PST
by
Grit
To: xrp
However, I believe that items such as healthy food and medicine should not be taxed. Then you'll have the Democrats and special interest groups demanding that their pet product or service be exempt from the Federal Sales Tax (My proposal).
Which means that the tax will be higher. Everything should be taxed at the same rate, then the rate would be lower.
To: Grit
Healthy food is stuff that is recommended for a good daily nutritional diet. Things like beer and chocolate chip cookies would not be tax-free.
Medicine is whatever you get by prescription. I don't think non-prescrip medicine should be tax-free.
17
posted on
10/31/2002 9:49:49 AM PST
by
xrp
To: Taxman
ping
18
posted on
10/31/2002 9:50:11 AM PST
by
kayak
To: Tumbleweed_Connection
How about we get rid of Medicare, Medicaid, Social Security, the gore tax, prescription drug benefits, congressional pork, subsidized housing, feel-good programs, property tax, car taxes, school taxes, city tax, county tax, state tax, capital gains tax and all the other $hit that consitutes nothing more than a black hole into which our hard earned money goes into?
19
posted on
10/31/2002 9:52:32 AM PST
by
SGCOS
To: BlackbirdSST
Perhaps it is strategery - designed to put the Demos on the defense for the next election cycle?
GW has show great skill in think for the long term. I suspect this is a move to put / push the Demorats into a corner.
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