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To: Willie Green; Tumbleweed_Connection; Deuce

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:

Posing?

H.R.2525
SPONSOR: Rep Linder, John (introduced 07/17/2001)
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:
http://www.fairtax.org & http://www.salestax.org

Sure looks like tax reform to me.

Willy, how many years you going to continue with the same wornout irrational diatribe? You never change it or try even to clean it up to present a more coherent and rational argument for your postition. Just through it out there to bump a thread because you don't like seeing the NRST touted as a alternative to the income tax.

You continually throw it out inspite of the fact it has been totally refuted everytime you have posted it.

Now to answer your specific allegations:

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.

ROTFLM(_|_)O!

Still playing rich man against poor man aren't you Willy.

You do know of course, that investors are home buyers and renters too, don't you?

Why don't you mention:

These factors more than overcomes any imagined advantage of investor over the homebuyer so that all homebuyers can become investors too.

But then good socialists never consider becoming investors themselves now do they W.G.


Now, lets take a look at some of your points and see how they hold up:

  • A family purchasing their own new home house(residential land is not taxed) 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 typical family purchasing their own new house today has 25% or more of their gross income extracted by the Federal government before they even think about buying a new or even an older house. That is not even counting the tax costs and costs of compliance placed on businesses of an additional 20 to 30% and embedded in the price of the new house.  

  • 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
  • Of course that landlord/investor also pays the same tax on the house he lives in or rents before he can ever become an "investor/landlord" in the first place. Or do you figure such folks live in NY allies and sleep on park benches.

    Additionally, a buyer of an older home, is not charged the NRST, which is the case of most first time buyers of homes.

  • 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.
  • Actually not, as the Landlord/invester pays the 23% tax on the home he lives in whether rented or purchased, the same manner as any other individual.

    Again untrue, the landlord/investor pays the same tax on the home he rents or buys new for his personal use. All individuals are treated the same under the NRST. Infact, because the individual receives the full benefit and control of his gross income, as opposed to merely after tax income under the current system. That plus the NRST prebate paid to ALL households provides an enhanced opportunity for everyone to become investors.

    Under the current Income/Payroll tax system, the total contribution of the federal tax system(including taxes in gross wage/salaries) to the price of retail consumption goods and services is 36% for taxes alone. Including cost of compliance at around $600billion/year, increases that percentage to about a 47% total burden with respect to current family consumption expenditure caused by the federal tax system as it exists today.

     


    Frankly, I'll be happy to pay 23% of the total payment for new goods and services, or as you would put it (30% added on) to the tax free price any day. Considering that I have available my full gross pay from which to accrue tax free growth of my savings and investments.

    Compared to what we are hit with now:

    We must . . . End Tax Slavery Now; Nov '97
    by Jarret B. Wollstein

    HOW MUCH DO YOU REALLY PAY?

         According to the Tax Foundation, in 1994 the average American paid 22.4% of his or her income in federal taxes, plus 11.8% in state and local taxes - 34.2% total.

         But that's just the beginning! Dr. James Payne of the University of California found that in addition to direct taxes we also pay huge, hidden taxes including:

         For every $1 we pay in direct taxes, we spend an additional $0.65 in compliance costs. And even that figure doesn't include the cost of import duties, license fees and other government regulations. For a typical U.S. family, the real cost of taxes and regulations is at least:

    Federal taxes              22.4% of income
    State & local taxes      11.8%
    Compliance costs        22.2%
    Regulatory costs         12.7%

    70.1% of your income is now consumed by government


    48 posted on 10/31/2002 3:10:05 PM PST by ancient_geezer
    [ Post Reply | Private Reply | To 36 | View Replies ]


    To: ancient_geezer; Willie Green; Taxman
    I view all taxes as arbitrary. Some people seem to have a rigid belief on what is "proper." To me the only issue is a practical one: the distribution of tax burden. Based on a study by the Joint Commission on Taxation, on page 3 they report numbers that allow me to calculate calculate that the top 1% pays 28% of income, the top 5% pays 27% of income, the top 10% pays 26% of income, etc.

    Over the last thirty years or so, the portion paid by the higher income/wealthier segment has been declining. Some feel that it should continue to decline. I feel strongly that it should reverse directions. I feel that the richer groups that have benefited most should pay the most. Don't interpret this as, "from each according to his abilities, to each according to his needs". Interpret it, instead, as he who benefits most from anything, should pay the most.

    Therfore, I will support any tax of any kind that moves the distribution of tax burden in the direction that I think it has to go. Can someone give me an estimate of what the NRST percetages are likely to be and how such estimate was made. I know that if real estate, corporate mergers, and financial transactions were taxed (a la the Tobin Tax) it would move in the direction I favor. I doubt NRST will---but I could be wrong.

    57 posted on 11/01/2002 10:26:14 AM PST by Deuce
    [ Post Reply | Private Reply | To 48 | View Replies ]

    To: ancient_geezer
    A family purchasing their own new home house(residential land is not taxed)

    That's a lie and aren't you plagiarizing?

    81 posted on 11/01/2002 7:22:43 PM PST by lewislynn
    [ Post Reply | Private Reply | To 48 | View Replies ]

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